France’s PSA will this month begin building a new engine plant in Porto Real, Rio de Janeiro state, writes Rogério Louro Alves.
PSA is investing $US50 million to build its new 110bhp, 1.6-litre, 16-valve engine in Brazil and expects to start producing 50,000 units a year from February 2002.
The new plant will produce engines for the Argentinean-made Peugeot 206 and the Citroën Xsara built in Uruguay.
Strangely, the Brazilian-made versions of these cars use different engines. The Picasso has a French 16-valve, two-litre motor and the 206, to be launched in June, will have a Brazilian Renault one-litre, 16-valve unit.
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