Following the shake-up just-auto reported back in February, PSA Peugeot Citroën has begun hiring and training 700 new workers for its Porto Real, state of Rio de Janeiro, plant. Before the end of the year, a third shift will be in place for a total of 3,170 employees and capacity increased from 110,000 to 150,000 units yearly.
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Currently, the French group produces the Peugeot 206 and 206 Estate/Escapade, Citroën C3 and Xsara Picasso. In 2008, the 206 will be restyled (it will look like the 207) and also the C3. Peugeot plans for 2008 and 2009 call for the 206 saloon and a derived light pick-up truck. For Citroën, a two-version, compact monovolume C3 Picasso is planned.
PSA also announced plans to boost by 7% production of 1.6 and 1.4-litre engines to over 150,000 units per year.
It will also become the first Brazilian-based automaker to export flexible-fuel, ethanol-petrol 1.6-litre/110 bhp engines to Europe. They will power Peugeot 307 SW/estate and Citroën C4 versions branded Bioflex. Sales start next month in France, Sweden and in the Netherlands.
The company continues work on the two-litre/143 bhp flexible-fuel engine due for introduction here in the first half of 2008. FFVs now account for 88.3% of all cars sold in Brazil, a new record. Only imported cars are now sold here with petrol-only engines.
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By GlobalDataPSA’s strategy is different from Renault, which produces its flexible-fuel engines in France.
Fernando Calmon
