PSA Invests 750M Euro in the Sevelnord Plant image

PSA Peugeot Citroen announced its plans to invest over 750 million euro ($937 million) for a new light commercial vehicle manufactured at the Sevelnord plant.

The automaker declared that this investment will secure the future of the plant and the employees. From the total investment of 750 million euro ($937 million), more than 400 million will be spent for development and research.

In July PSA Peugeot Citroen reached an agreement with the labor union to freeze wages and apply other labor concessions, to avoid closing the plant. The agreement was reached after the automaker cut more than 10,000 jobs in France and closed a facility near Paris. The employees from the Sevelnord plant were forced to accept the reduced salaries and increased working-time flexibility, otherwise Peugeot would have chosen a Spanish factory to manufacture the vehicles produced at the Sevelnord.

“We now hope to get a commitment for the new vehicle very quickly,” said Pascal Lucas, an official with the CFE-CGC union.”Given the pressure they put on us to sign, the announcement ought to come soon.”

The facility is located near the city of Valenciennes, and in 2011 it produced 94,000 vans, from which 20,000 belonged to Fiat, which plans to exit the joint venture and phase out production of the Scudo model.