Following the announcement earlier this week that Groupe PSA would spend EUR700 million (USD784.8 million) on its Spanish operations by the end of the decade, the company has confirmed that its Vigo site will gain the majority of its investment. A spokesperson for the automaker told Reuters that around EUR640 million will be spent at this factory, and the remainder in Madrid.
Significance: The plans were revealed as part of comments made by PSA's chief executive officer (CEO) Carlos Tavares on a visit to the country. The Vigo site currently manufactures the Peugeot Partner/Citroën Berlingo light commercial vehicles (LCVs), Peugeot 301/Citroën C-Elysée sedans and Citroën C4 Picasso, and undertakes over 80% of the production in the country. It has also already secured the replacements for the current Peugeot Partner/Citroën Berlingo as well as the next Opel Combo, which will share their architecture. However, it is expected that further new and replacement models will be also announced in due course for this site. IHS Automotive currently anticipates that this will include the replacement for the Peugeot 301/Citroën C-Elysée sedans as well as the Peugeot 2008 replacement which will eventually take over from the Citroën C4 Picasso. The investment in Vigo is expected to result in production at the site rising from 407,000 units during 2015 to around 525,000 units by the end of the decade.
