The Bangkok Post reports that Peugeot is planning to make the all-new 407 in Thailand and use ASEAN trading rules to trade it for the 307 and 206 made in Malaysia and Indonesia.


Early next year, Peugeot will start assembling the 206 compact hatchback in Indonesia, while Malaysia will be making the 307.


The newspaper report cites a European source as saying that Thailand will assemble the all-new 407 replacement to the 406, which is currently made at the YMC Assembly owned by the Yontrakit Group.


The 406 is the only model made in Thailand by Peugeot and accounts for nearly all Peugeot units sold annually (approximately 1,000). The 407 successor is due in less than two years.


According to the report, Peugeot is said to be keen on building its presence and sales volume in Thailand, but is hampered by high import duties. To make local assembly more feasible, Peugeot is looking at making use of investment privileges among Asean members. In particular, the ASEAN Investment Cooperation (Aico) industrial programme would enable the carmaker to reduce costs and increase volume.

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