PSA/Peugeot Citroen will upgrade French plant to boost engine production

Article by Christian Andrei, on April 3, 2015

PSA/Peugeot-Citroen has decided to go with a French plant instead of a plant in Vigo, Spain, for its plan to expand engine production. The automaker aims to produce 200,000 more engines annually. For this project, the company chose to build the turbocharged version of a three-cylinder engine that was already being produced in the Tremery plant located in northeastern France.

This plant will have to be upgraded to accommodate the increase in production. This move is seen to protect local jobs. According to manufacturing head Yann Vincent, PSA based its decision on how the Tremery plant was able to reach competitiveness targets as well as on the unions’ concessions related to productivity.

Vincent asserted that this added production will not result in the net increase in jobs. In fact, attrition will still cut some of the plant’s workforce of 3,700 members. He added that the decision to boost domestic production had a strictly economic basis.

It won’t have any impact on actions to double the parts bought from lower-wage countries according to recovery plan initiated by CEO Carlos Tavares. He also said that Spain may have lower wages but it was more of a financial advantage to utilize the existing engine production capacity as well as the component supply logistics of the plant in Tremery.

Currently, only vehicles are manufactured in the Vigo plant. Vincent emphasized that the decision was due to its “superior economic performance." The models that use the three-cylinder engine include the following: the Peugeot 208, 308, 2008 and 3008, the Citroen C3, C4, C4 Cactus and C4 Picasso, as well as the DS 3 and DS 4.

In a statement, PSA said that the engine reduces fuel usage and CO2 emissions by 18% on average in comparison with the naturally aspirated EP Prince engine. There’s no denying that some vindication will be claimed with regards to this investment.

PSA received a 3 billion euro ($3.26 billion) bailout wherein the French government was able to acquire a 14% stake last year. When Economy Minister Emmanuel Macron hosted a workers’ delegation last March 19, he expressed his support for Tremery to get the new investment.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries