During a short visit to Brazil, PSA chairman Jean-Martin Folz confirmed that the company will start to produce a 1.4-litre eight-valve engine in its Porto Real plant, in Rio de Janeiro state, writes Rogério Louro.
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Production will start in August and the 1.4-litre engines will replace powerplants imported from France in the Brazilian-made Peugeot 206 and Citroën C3.
To make the new engine in Brazil PSA is investing about $US20 million to extend the engine assembly line that was opened in 2002 to make 1.6-litre 16-valve engines.
The factory currently has capacity to produce 50,000 units per year, but volume will increase. “The first step is increase the capacity to 70,000 engines per year and by the end of 2005 we expect to have the capacity to make 120,000 units”, said Folz.
At the end of this year the engine assembly line will start also to make a new, unique-to-Brazil flex-fuel version of the 1.6-litre 16-valve engine that will also be used in the 206 and C3.
The Porto Real plant opened in February 2001 and produces the C3, Picasso and 206. In November it will add the 206SW station wagon.
