PSA Peugeot Citroen said it would invest 50 million euros ($53.72
million) to start making its top-selling Peugeot 307 car in Argentina in
2004. The firm said it would make 16,000 cars at its factory in Buenos
Aires in its first year of operation, marking the introduction of its
new mid-range car platform in Argentina. Some 60 percent of cars made
would be sold in Latin America.
"This investment decision confirms the long term strategy of
the group in Latin America, as well as its commitment to sustaining its
business despite the difficult economic environment," PSA said.
PSA Chairman Jean-Martin Folz told a news conference in Buenos
Aires the decision to make more cars in Argentina was also driven by the
devaluation of the currency in January 2002, which made it cheaper for
companies to produce goods there.
"Obviously the currency developments play a major role (in the
investment decision)". "We will buy as many spare parts as
possible in Argentina and Mercosur," Folz said. The Argentine
government has forecast the country will produce some 110,000 autos this
year.
PSA said in 2002 its Buenos Aires plant produced 17,800 vehicles,
and currently employs 1,560 people, adding it edged its market share in
Argentina up to 18 percent in 2002, while the market tanked 53 percent
amid economic strife.
COPYRIGHT 2003 International Trade
Services Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2003, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.