Peugeot to launch Production Facility in Morocco

By on May 21, 2015

French car manufacturer PSA Peugeot Citroen is planning to build a production facility in Morocco as part of an effort to increase its sales in Africa, following in the footsteps of French rival Renault SA, a source close to the company told Bloomberg news agency.

“The plant would initially have a capacity of fewer than 100,000 vehicles a year, and Peugeot may announce the project publicly as early as June”, according to two people familiar with the matter, who asked not to be named because the talks are private.

The factory might be possibly located near the city of Kenitra.

The first Moroccan-assembled vehicles would come from the middle to lower portion of Peugeot’s product range and be sold in the region, the same source said.

Morocco is familiar territory for Peugeot Chief Executive Officer Carlos Tavares. The former Renault director of operations helped the latter set up its factory in Tangier.

In February 2012 King Mohammed VI inaugurated the Renault-Nissan Alliance factory in Tangiers, specialized in the manufacturing of low-cost cars.

The new factory would be the first wholly owned and operated by Peugeot in Africa. Europe’s second-biggest carmaker’s sales in Africa and the Middle East dropped 25 percent last year to 169,400 vehicles. That was 5.8 percent of its total sales.

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