The French automotive group PSA Peugeot-Citroen could make a third car in Brazil,
writes Rogério Louro Alvez.

During the opening ceremony of the PSA group’s first Brazilian plant on
Wednesday, global president Jean-Martin Folz said: "The plant was built
to produce two cars (Peugeot 206 and Citroen Xsara Picasso), but after two or
three years we may make another car".

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Citroen of Brazil president Sergio Habib said that the third car model was
not yet decided.

"We will make a new Citroën compact car in 2004 or 2005", was
all he would divulge.

PSA has started Brazilian production of the Citroen Xsara Picasso with two-litre
16-valve engine and a new Peugeot 206 derivative.

Elsewhere, the smallest 206 engine is a 1.1 litre eight-valve Peugeot unit
but one-litre cars account for about 70% of Brazilian sales. So the Brazilian-built
206 has a one-litre, 16-valve Renault engine made in a plant in São José
dos Pinhais, in the state of Paraná.

Renault will also use the engine in a new version of its Brazil-made Clio which
goes on sale in April. Peugeot 206 sales start in June.

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