The PSA Group has started production of the 1.6-litre 16-valve Peugeot 206 at its Brazilian plant in Porto Real, Rio de Janeiro state, writes Rogério Louro.

The factory has previously built only the unique-to-Brazil one-litre 16-valve 206 for the country#;s ‘popular car#; market segment alongside a two-litre 16-valve version of the Citroen Picasso minivan.

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When Brazilian-made supplies of the 1.6-litre 206 build up, PSA will stop importing the Argentine-assembled models it has previously imported though the factory in Argentina will continue to supply other South American countries.

Like the Argentine-built 1.6-litre 206, the new Brazilian version uses an engine made in the new PSA engine plant opened last February alongside the car factory in Porto Real.

The one-litre model has a Renault engine built in a plant in São José dos Pinhais, Paraná state.

PSA is also now assembling the Peugeot Boxer van at the Fiat Iveco commercial vehicles plant in Sete Lagoas, Minas Gerais state.

PSA and Fiat recently renewed their long-standing agreement through which the two companies jointly develop and build commercial and passenger-carrying vans for sale under Fiat#;s Fiat and Lancia brands and PSA#;s Peugeot and Citroen nameplates.

The vans are with all four nameplates built in the joint venture#;s Sevel Nord and Sud plants in France while some versions are also assembled in Brazil.

Inititally, the Brazilian-made Peugeot Boxer will be sold only in its country of manufacture.

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