PSA Peugeot-Citroën has confirmed that it will build a new DS model at its Mulhouse (France) site. In a statement, the automaker said that it had made the announcement at a Works Council meeting at the site. Production of this model will begin in 2018, and will be supported by a EUR400 million (USD441.7 million) in capital expenditure that has already started, which will include the renovation of a line at the site over the next 15 months.
Significance: The forthcoming DS model will be the third new model to be produced at the site off the EMP2 architecture in the future. These are expected to be the replacement for the current Peugeot 508 in sedan and estate form, which look set to be launched in 2017. We currently see the DS model being a new compact crossover for the brand as PSA broadens its portfolio in the region to six models by 2020. This will allow this site to focus on more high-margin cars than it does currently, manufacturing the Citroën C4, DS DS4 and Peugeot 2008. The DS C-CUV will replace the Citroën C4 at the site, and is the factory is expected to produce around 40,000 units per annum.
