PSA Peugeot Citroen To Double Production In Argentina By 2007

At a press conference today in Buenos Aires, PSA Peugeot Citroen presented its industrial development plan for Argentina.

The plan calls for the production launch of two new models at the Group’s Buenos Aires plant, where the Peugeot 206, 307 and Partner and the Citroen Berlingo are currently manufactured. Production of the two models is expected to begin by 2007.

At the same time, output will be considerably increased at the Jeppener facility, which makes engines and other mechanical components.

These developments are supported by the favourable outlook for the Argentine automobile market. As well, they will leverage both facilities’ heightened competitiveness, reflecting the country’s improved economic situation, the restructuring programmes carried out on both sites in recent years, and faster increase in local content.

The new models will be exported to other Mercosur countries, as well as to other Latin American markets and possibly around the world.

Annual output at the Buenos Aires facility is expected to increase from the 45,000 cars planned in 2004 to 100,000 in 2007. The addition of a new shift will increase capacity utilisation to nearly 100%. Component production at the Jeppener site should triple over the same period.

In all, the plan will create more than 1,000 jobs at the two facilities, in addition to the 300 people already hired in 2004.

Total investment is expected to amount to 450 million Argentine pesos (125 million euros). One-third of this will be devoted to local content, which in turn will deliver more business to the Group’s Argentine suppliers.

The plan is in line with PSA Peugeot Citroen’s strategy in the Mercosur countries, which focuses on balanced, parallel development of automobile production in Argentina and Brazil.