PSA Group Increases SUV Production Capacity In Europe

May 31, 2018 by PSA Group

•Following the success of the SUV offensive led by its five brands, the Group is increasing production capacity in Europe to meet market demand

•Conditions are now in place to achieve the highest levels of performance and quality in each of the plants concerned

•Implementing these projects will ensure high capacity utilisation in each plant in the coming years

The product offensive launched as part of the Push to Pass plan's Core Model Strategy has led to the recent introduction of 11 SUV models by the Group's five brands – Peugeot, Citroën, DS Automobiles, Opel and Vauxhall – together representing 250,000 registrations in Europe in the first quarter of 2018. Over the same period, the Group's share of the European SUV market has risen sharply, to 16.9% beginning of 2018.

As of end-March, the Group was among segment leaders and the offensive was being pursued, with the upcoming roll-out of the Citroën C5 Aircross in September in Europe.

To support the rapid and sustained growth in sales and maintain its industrial agility, which is a strong performance driver, the Group has decided to increase its production capacity in Europe, using all its available resources and assets:

•Citroën C5 Aircross starts its production in Rennes, France, along with the Peugeot 5008

•As a result, as soon as the production in Rennes reaches its full capacity, the Peugeot 5008 will be added to the Peugeot 3008 and the Opel Grandland X line in Sochaux, France, from March 2019.

•Lastly, as soon as the production in Sochaux plant reaches its full capacity, the Opel Grandland X will be progressively assembled in Eisenach, Germany as from mid-2019.

The industrial launch will be supported by appropriate investments, which will enable each plant to deliver excellent performance, high output and superior quality.

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These production allocations, which were made possible by the performance plans, will be carried out in accordance with the undertakings in the New Momentum for Growth agreement, signed in July 2016 by five out of six French trade unions, and will maintain production in France at one million vehicles. The new allocations also reflect the agreements negotiated with employee representatives in Germany as part of the Opel/Vauxhall performance plan.

Yann Vincent, Executive Vice President, Manufacturing & Supply Chain, said: 'These vehicle allocations demonstrate that economic performance plays a key role in ensuring high capacity utilisation over the long term. Our agile production base, which has been broadened by the Opel acquisition, is enabling us to meet growing customer demand for SUVs.'

Opel-Vauxhall CEO, Michael Lohscheller added : 'The production of the Grandland X in Eisenach plant demonstrates PSA Group's will to invest in Germany and its trust in Opel. It will help us to become profitable, electric and global'.

This industrial scheme completes the worldwide and multi-site strategy of SUV production in the Group, enabled by the platform modularity:

•Peugeot 2008, production in Mulhouse (France), Porto Real (Brazil), Wuhan (China)

•Peugeot 3008, production in Sochaux (France), Chulai (Vietnam), Gurun (Malaysia) et Walvis Bay (Namibia)

•Peugeot 4008, production in Chengdu (China),

•Peugeot 5008, production in Rennes and Sochaux (France), Chulai (Vietnam) and Chengdu (China),

•C3 Aircross production in Zaragoza (Spain)

•C4 Aircross, production in Wuhan (China)

•C5 Aircross, production in Rennes (France) and Chengdu (China)

•DS 7 Crossback, production in Mulhouse (France) and Shenzhen (China)

•Opel/Vauxhall Grandland X, production in Sochaux (France), then Eisenach (Germany) and Walvis Bay (Namibia)

•Opel/Vauxhall Crossland X, production in Zaragoza (Spain)

•Opel/Vauxhall Mokka X, production in Zaragoza (Spain), in Bupyeong (Korea)

Today, the Group operates 17 automobile production plants in nine countries in Europe.