Economy, Auto

PSA Group to Open Argentina Factory

PSA Group to Open Argentina FactoryPSA Group to Open Argentina Factory

PSA Group (Peugeot & Citroen) has agreed to invest $320 million in Argentina with the aim of creating a new line up of vehicles for the South American market.

PSA is pushing ahead with plans to expand its market position in several countries of late -- including Iran – while traditional markets like Europe have weak growth figures slowing future developments.

The new plant will be located on the outskirts of the Argentine capital, Beunos Aires, and will produce vehicles for the burgeoning South American market.

PSA’s director of Latin America, Carlos Gomes, made the announcement to President Maurciio Macri during a meeting on December 6, the government noted following the meeting.

Macri has previously stated that investment in Argentine production will help pull the country out of its long economic malaise. The meeting comes as auto production in that country grew by a modest 3.3% in November in Argentina, after falling for the previous months against production in Brazil.

Exports also rose 15.8% from November 2015, data from the Association of Automobile Manufacturers (Adefa) said.

PSA’s sales and production strategy is becoming more evident as the months move ahead; the crux of their ultimate strategy is to localize their products to each and every market – like Iran and Argentina – and to sell in bulk.

European automakers and third-party manufacturers rebounded in the third quarter after six months of decline, according to this paper earlier in the week.

An increase in trade with Iran has helped certain French brands see a large uptick in their sales overall, according to ANE-PricewaterhouseCoopers’ latest report.

The French company recorded a 25.7% gain in shareholder value compared with a 28.2% dip in the preceding quarter and a 7.1% decline in the three months before that.

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