It was reported in November last year, that PSA Peugeot Citroen plans to open an engineering centre in Morocco with consulting firm Altran and that this could lead to a low-cost vehicle assembly centre in the country.
Now a fresh report from from Bloomberg, citing undisclosed sources, says that PSA Peugeot Citroen is planning to build a new low-cost car factory in Morocco to increase sales in Africa, where its homeland-rival Renault is already manufacturing cars at a plant in Tangier. The new plant may be announced as early as June and would have an annual production capacity of close to 100,000 vehicles in the beginning. The locally produced vehicles will be from Peugeot’s mid-range to the lower-range and be sold domestically.
Europe’s second biggest car manufacturer wants to loosen its reliance on Old Continent, as per the report. 60% of its last year’s annual sales was in Europe itself. The Paris-based automaker wants to realize a wholly owned and operated factory in the continent so that it can revive its growth there and in the Middle East. Its sales dropped by 25% in the two regions last year alone.