PSA starts home recovery image

The battered European carmaker has announced it’s starting the restructuring process at home in France by investing 300 million euros ($408 million) to upgrade and actually also contract its Mulhouse factory.

This is all part of the bigger revamp plan envisioned by the new Chief Executive Carlos Tavares, which unveiled the “Back in the race” strategy not long ago – just as PSA Peugeot Citroen was issuing new shares that would allow its Chinese partner Dongfeng, the French state and other minority shareholders boost the cash flow of the troubled automaker.

“This project is great news for the Mulhouse plant. It’s also a huge challenge for us because upgrading the manufacturing process will make it possible for us to become one of the best European plants in the C and D segments, with superior quality and competitiveness,” said plant manager Corinne Spilios.

The French carmaker, Europe’s second largest, also held talks with the unions, giving them insight on the future plans for the manufacturing facility – the future build of two new, big cars and a model in the compact segment. Their second biggest plant at home would nevertheless be downsized to just one production line – with production capacity set to reach a 200,000 units level before the first new car would be introduced, somewhere around 2016.

Via Automotive News Europe