PSA Peugeot Citroën has built its millionth vehicle at the Palomar plant in Argentina, and millionth engine in Porto Real, State of Rio de Janeiro, Brazil.

Latin America unit sales rose 27% in 2010 and market coverage exceeded 50%. The group made further gains in the region in the first three months of 2011, with market share widening to 6% from 5.3% a year earlier.

It announced a EUR700m development plan in 2010 with EUR530m for operations in Brazil and EUR170m in Argentina. This plan is designed to reach break-even at the recurring operating income level this year and to drive an increase in market share to 7% in 2015.

A new purchasing strategy and a reduction in the number of platforms will generate major economies of scale by tripling the production of each model. The Porto Real plant in Brazil is dedicated to compacts and engines, while the Palomar facility in Argentina specialises in mid-sized models.

The Peugeot [207-based] Hoggar pick-up, 408 and Citroën C3 Aircross were launched last year in Latin America.

Over the next four years eight new vehicles "increasingly well aligned with local car buyer expectations" will be introduced.