PSA Peugeot Citroen to open an engineering center in Morroco image

According to a couple of sources cited by Reuters, PSA Peugeot Citroen will open an engineering center in the North African country which will specialize in computer-assisted design, car modeling and technical documentation.

The move might precede an investment in low-cost vehicle assembly in Morocco. Peugeot’s new center will be located in Casablanca and will create 1,500 jobs for the new Altran center. While the following step could be considered to be the building of an assembly plant as Renault is already making low-cost Dacia car models in Morocco at its Tangier plant, a Peugeot spokesman for the car manufacturer stated that a low-cost assembly plant in Morocco is not in the plans for the auto brand without confirming the R&D center, either.

Even if Peugeot’s low-cost plans remain of actuality, the company has been delaying them as it is focused on restructuring in France as well as possibly reopening the Iranian market, information given by three sources wary of the matter. This would be an important step for Peugeot in its chase to regain competitiveness despite the impact on jobs that its new engineering center would have in France, which will most definitely not be popular among unions and the government.

By Gabriela Florea