PSA will allocate 300 million euros to modernise its Mulhouse plant

The French group PSA Peugeot Citroën has announced an investment of three hundred million euros between 2014 and 2020 to upgrade its production centre in Mulhouse, located in north-eastern France, following a meeting with the works council. This measure represents one of the first steps in PSA’s European recovery plan, called “Back in the Race“, whose aim is to increase its production competitiveness.

The strategy is in line with the collective agreement the group signed on 24 October. It is built around reducing the number of assembly lines to a single one, strengthening the role of the metalworking and mechanical components plants at the centre, and assigning three new models alongside the Citroën C4 and DS4 and the Peugeot 208.

The unions speak of two saloons and a compact belonging to the C and D segments. PSA states in its release that they will be based on the EMP2 platform currently used by the Citroën C4 Picasso and the Peugeot 308. According to union sources, the first of them will begin production in 2016.

In principle, this announcement brings positive consequences for the workforce of 7,550 employees, since it secures their future until 2020. In addition, they expect more staff will need to be hired as the new models arrive. The works council of the Mulhouse plant has also confirmed that, in accordance with the collective agreement, PSA commits to maintaining annual production of around 200,000 units.

Source | PSA Peugeot Citroën
Via | Automotive News