PSA Restored Third Shift in Brazil Plant

The recession is not yet a thing of the past, though it seems that predictions for 2010 indicate economy growth in many countries. It’s a fact that not all automakers can look back at 2009 and smile, but most are seriously considering boosting up production at pre-recession levels. And some have already done so.

PSA Peugeot Citroen have restored the third shift in their Brazil plant and are already in full production. Due to the impact of the economic crisis, PSA was forced to cancel the third shift in late 2008 and fire about 250 workers. Things seem be up and running, as the plant hired 700 new hourly employees, says

Adding the third shift came as a must for PSA, as forecasts show sales growth in 2010 and new models are on their way. The Peugeot 207 pick-up will hit the Brazilian market in April, followed by the C3 Picasso, which will have an “adventure-look” - body add-ons and even an externally attached spare wheel.

Last year, the plant produced 111,000 cars and 152,000 engines. By adding the third shift, PSA’s plant will be capable of producing 160,000 vehicles and 220,000 engines.

“New investments under study, additional to the US$500m for the 2008-2011 period, might include production capacity increase in the region,” said Vincent Rambaud, PSA group president for Brazil and Latin America.

Though he refused to name places taken into consideration for the investments, he did admit that Brazil is an important market.

“And the quick recovery in 2009 was astonishing,” he added.
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