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.

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.

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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.