One such company is PSA Peugeot Citroen, which has announcing that the one-millionth vehicle has rolled off the assembly line at its Palomar plant in Argentina, while the one owned by the very same Group in Porto Real, State of Rio de Janeiro, Brazil was producing its one-millionth engine.
These figures confirm the group’s dynamic growth in Latin America, where unit sales rose by 27 percent in 2010 and market coverage exceeded 50 percent. The Group made further gains in the region in the first three months of 2011, with market share widening to 6 percent from 5.3 percent a year earlier.
Thus, PSA Peugeot Citroen is having its first benefits of the EUR700-million development plan announced in 2010, which is committing EUR530 million to operations in Brazil and EUR170 million to Argentina. The program is expected to reach the break-even point at the recurring operating income level this year and to drive an increase in market share to 7 percent in 2015.
“A new purchasing strategy and a reduction in the number of platforms will generate major economies of scale by tripling the production of each model. The Porto Real plant in Brazil is dedicated to compacts and motors, while the Palomar facility in Argentina is specialised in mid-sized models,” the official statement reads.
Last year, the French duo launched the Peugeot Hoggar pick-up, the Peugeot 408 and the Citroen C3 Aircross. Further momentum is expected over the next four years with the launch of eight new vehicles increasingly well-aligned with local needs and expectations.
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