PSA rules out building another Peugeot in Madrid

The CEO of Peugeot, Maxime Picat, has confirmed that the plant the PSA group operates in Villaverde, Madrid will stop production of the 207 CC “in the coming months,” and there are no plans for any other model from the brand to replace it on the assembly lines. Instead, the Madrid plant will focus on the Citroën C4 Cactus.

Picat announced the news last Thursday during the press presentation of the facelift of the Peugeot 508, which will be shown to the public at the upcoming Paris Motor Show in October. The strategy regarding Madrid is in line with the reduction of PSA’s models (from 26 to 13) set out in the “Back in the Race” roadmap, whose details were expanded on by the group’s CEO, Carlos Tavares, two months ago.

As for the Cactus, the brand’s new model has started production this month in Madrid for the entire world. Citroën expects 80,000 units to leave these facilities by the end of the year. However, the plant could increase its production capacity to 200,000 vehicles in the event of demand peaks by introducing three work shifts.

If the Cactus achieves similar success to the Renault Captur, whose 200,000th unit left the French brand’s factory in Valladolid this Friday, the Madrid production center will secure its activity for the near future. Nor will the purchase of PSA shares by the Chinese manufacturer Dongfeng affect this, since that move, as Maxime Picat stated, is more linked to the group’s expansion across Asia, where it wants to build more cars and sell in more countries.

Source: Ecomotor