PSA to start car assembly in Nigeria this year image

The French automaker, Europe’s second largest, wants to begin auto manufacturing in the African country with the aid of a local manufacturing partner. The news also comes just three months after rival Renault-Nissan started local car production.

PAN Nigeria Ltd. will start limited production of the Peugeot 301 sedan at a manufacturing facility in the central state of Kaduna, in Africa’s biggest economy. The car will be assembled from semi knockdown kits sent by PSA from its plant in Vigo, Spain. The automaker also said that based on performance figures, production for other models, like the Peugeot 308 compact and 508 mid-sized car, could follow later.

“This assembly agreement perfectly illustrates what the Group aims to achieve with its new region-based organization. As announced in the “Back in the Race” strategic plan, we are going to focus more on growth markets. The assembly of the Peugeot 301 in Nigeria, a growth pillar in Africa, will enable the Group to take full advantage of growth opportunities in the market,” said Jean-Christophe Quémard, Operations Director, Africa-Middle East.

Renault-Nissan disclosed plans to start vehicle production in Nigeria last year in October, again through a local partner – West African conglomerate Stallion Group. In April, the first car – a Nissan Patrol SUV – was produced in the Lagos factory. Since then, the alliance also added the Almera sedan and NP300 pickup.

Via Automotive News Europe