In line with increasing global demand for SUVs and CUVs, PSA Group announces plans to expand its production of these vehicles in its French and German plants.
The French automaker currently boasts 11 light-utility vehicles across its five brands – Peugeot, Citroën, DS Automobiles, Opel and Vauxhall – together representing 250,000 registrations in Europe in first-quarter 2018. PSA’s share of the European SUV/CUV market has risen sharply to 16.9% at the beginning of 2018.
It will be adding to the lineup in September with the European launch of the new Citroën C5 Aircross.
To support the rapid growth in sales and maintain industrial agility, the automaker is increasing its production capacity in Europe.
Citroën C5 Aircross initially will be assembled in Rennes, France, along with the Peugeot 5008. Once production in Rennes reaches its full capacity, the Peugeot 5008 will be added to the Peugeot 3008 and the Opel Grandland X line at its other large capacity French plant, Sochaux, in March 2019.
Lastly, as soon as the production in Sochaux plant reaches its full capacity, the Opel Grandland X will be assembled in Eisenach, Germany, from mid-2019.
These production allocations will be carried out in accordance with the New Momentum for Growth agreement signed in July 2016 by five out of six French trade unions, and will maintain production in France at 1 million vehicles.
The new allocations also reflect the agreements negotiated with employee representatives in Germany as part of the Opel/Vauxhall performance plan.
Yann Vincent, executive vice president-manufacturing and supply chain, says: “These vehicle allocations demonstrate that economic performance plays a key role in ensuring high capacity utilization over the long term. Our agile production base, which has been broadened by the Opel acquisition, is enabling us to meet growing customer demand for SUVs.”
Opel-Vauxhall CEO Michael Lohscheller adds: “The production of the Grandland X in the Eisenach plant demonstrates Group PSA’s will to invest in Germany and its trust in Opel. It will help us to become profitable, electric and global.”