PSA Group enhances European production

PSA Group has announced a number of new initiatives to improve its competitiveness in Europe.

It will increase the agility of its manufacturing base by producing components as close as possible to car plants, while adapting its output to customer expectations, taking into account technological and energy shifts.

These changes are also an opportunity to adjust production capacity for Group engines as the manufacture of Opel/Vauxhall models is gradually ramped up on PSA Group platforms and fitted with PSA Group powertrains and technologies.

As such, the group has decided to make three adjustments

It will increase production of the 3-cylinder Turbo PureTech petrol engine as close as possible to car plants. In addition to doubling production capacity in France, compared to 2016, already in progress in Douvrin and Trémery plants, the group will be producing PureTech engines in Tichy (Poland) and Szentgotthárd (Hungary) from 2019 onwards.

It will also increase production of gearboxes from 2019 with the manufacture under license of automatic gearbox in Valenciennes (France), set to reach full potential by 2020, thanks to a strategic partnership signed with AISIN AW. Until now, this component has been manufactured in Japan and China. The group will also invest to produce additional volumes of manual ML gearboxes in Metz-Borny (France) and MB6 gearboxes in Aspern (Austria), in particular to equip its high-end and light commercial vehicles and serve growing needs driven by production of Opel/Vauxhall cars.

Further, it will prepare the Trémery plant (France) to produce electrical motors from 2019 onwards, before acceleration from 2021 onwards, ensuring that the group’s vehicle range will include e an electrified offering by 2025.

Yann Vincent, executive vice-president, manufacturing and supply chain, said, ‘What will make the difference will be our agility to prepare our manufacturing base to produce components that meet customer needs and respond to the energy shift, creating the conditions for a sustainable future through enhanced performance. PSA Group’s 15 component production plants in Europe, located in France, Germany, Austria, Hungary and Poland, are eager to propose the best quality and performance to our customers.’