Peugeot 307 Sedan to be built in Argentina

[Plex]

06/13/2006

PSA Peugeot Citroën consolidates manufacturing base in Argentina with start-up of local production of the Peugeot 307 Sedan


Jean-Martin Folz, Chairman of PSA Peugeot Citroën, today inaugurated the new production line that will produce the Peugeot 307 Sedan at the Group’s plant in Buenos Aires. The ceremony was attended by Nestor Kirchner, President of Argentina.

The 307 Sedan is the fifth model produced at the Buenos Aires plant, which already manufactures the Peugeot 206, 5-door 307 and Partner and the Citroën Berlingo. It will be introduced in Argentina in July 2006, then gradually rolled out in Brazil and other Latin American markets by October. The full-year objective is to sell 22,000 units across the region.

The start-up of 307 Sedan production marks a new phase in the Group’s 2005-2007 manufacturing program in Argentina. Totaling ARS 450 million (€120 million), the program involves the introduction of new vehicles, an increase in car production at the Buenos Aires plant and of mechanical component output at the Jeppener facility, and a significant increase in local content. In all, it is expected to create more than 1,000 jobs.

Peugeot Citroën Argentina currently employs nearly 3,900 people. With the start-up of 307 Sedan production, output will rise to almost 100,000 units a year. This compares with 1,500 people and 17,800 units at year-end 2002.

Expansion of the production base is being driven by the favorable outlook for the Latin American automobile market and the strong sales of Peugeot and Citroën models in the region. As of May 31, PSA Peugeot Citroën sales were up 29 % to nearly 29,000 units in Argentina, in a market up 19 %. Market share stood at 14.6%.
In Brazil, Group registrations were up 38% to 37,600 vehicles, for a 5,6 % share of a market up just 10%.


http://www.psa-peugeot-citroen.com/en/psa_espace/press_releases_details_d1.php?id=587