PSA Peugeot Citroen has marked production of its one millionth vehicle at the facility in Porto Real in the Brazilian state of Rio de Janeiro. The landmark model, a Citroen C3, comes eleven years after the plant started operations. Capacity at the plant is currently being expanded.
“The Porto Real Production Centre has played a strategic role in developing PSA Peugeot Citroen’s operations in the Brazil and Latin American markets in recent years and is a key component of our future growth plans for the region,” commented Carlos Gomes, PSA’s Senior Vice President Latin America. “That’s why we’re currently increasing our production capacity and launching production of new models, like the Citroen C3, which will be followed by other new products.”
The expansion plans underway at the moment will increase capacity from 29 vehicles/hour to 40. The project is part of a larger, wide-ranging commitment to invest €530m (US$682m) in the country between 2010 and 2012, followed by another €240m a year through 2015.
In addition to the Citroen C3, Porto Real also makes the C3 Picasso, C3 Aircross, Peugeot 207, 207 Passion, 207 SW and Hoggar. The facility also includes an engine plant. In total, the Porto Real site employs about 4,000 people.
PSA has enjoyed steady growth in the Latin American region. Last year, its sales rose 11.3% to 300,000 units, giving it a 5.5% share of the market. Latin America is one of three priority regions targeted for growth under PSA’s international development strategy.
In Brazil, the market is currently dominated by Volkswagen, Fiat and General Motors, but they are facing increased competition from other smaller players. From 2000 to 2011, the Brazilian ‘Big-3’ lost over 19 points in market share. Looking ahead, their share is expected to continue to shrink.
The market is seeing a growing number of Brazil-specific models. Nissan plans to unveil a new key model for the Brazilian market, described by the OEM as ‘hugely significant’ at the upcoming Sao Paulo International Motor Show (24 October – 4 November). In September, Hyundai launched the HB20 compact hatchback Brazil-only model. Sedan and crossover versions of the HB will follow next year, and all models will be built at the company’s Piracicaba factory.
In contrast to its expansion in Brazil, PSA has been cutting production in Europe in response to falling sales. It is slowing the hourly 208 build rate at the Poissy plant in France and halting its Trnava facility in Slovakia for 21 days during the fourth quarter. The Aulnay plant is slated for closure and jobs will be cut at the facility in Rennes as well.
