Citroen C Elysee left side

Report – PSA Peugeot Citroen to open engineering centre in Morocco

November 17, 2014

According to a Reuters report, PSA Peugeot Citroen has plans to open an engineering centre in Morocco with consulting firm Altran. The motive behind this plan is targeting lower-wage countries. The company plans to outsources some of their research and development work to the Altran centre in Casablanca.

Peugeot 301 front three quarters left

The Altran centre will specialize in computer-assisted design, modelling and technical documentation. Eventually, opening this new engineering centre in Morocco could lead to a low-cost vehicle assembly plant in the country. These steps aim at making the most out of the North African market. The brand’s French competitor Renault already assembles cars in Morocco at a facility in Tangier. Renault builds the low-cost Dacia Lodgy here. A Peugeot spokesman ruled-out any possibility of such plans but still, this could be the next potential step.

Some of the company’s most affordable cars at the moment are the Peugeot 301 and Citroen C-Elysee sedans; both are stripped-down budget models of more expensive ones, manufactured in Spain. If this plan is implemented, the company will create 1,500 jobs at the new Altran centre. However, this plan on the other side in France, could negatively affect the company’s relation with the unions and the government considering the struggling economy and an unemployment rate above 10 percent.

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