PSA Peugeot Citroen is studying building a new variant of its C4 model at Vigo in north west Spain, Luis Fernando De Luis Martin, secretary for Spanish union CCOO’s automobile unit told just-auto.
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The new car will probably be a minivan to complement the C4 production line PSA plans to launch in January 2006 to replace the Xsara Picasso family minivan, Martin said.
PSA has already invested €100m to prepare for the C4 project and plans to invest €800m in Vigo by 2007, he confirmed.
If the project goes ahead, PSA Peugeot will hire 250 new workers to boost Vigo staff to 10,250.
PSA did not immediately return phone calls requesting comment.
Apart from the Xsara Picasso, PSA makes the Berlingo, C15 and Peugeot Partner van models at Vigo where it churned out 472,695 vehicles last year.
Martin said the plant will lower its capacity this year, however, because of slower output aimed as the Xsara is phased out.
The automobile industry is one of the Galicia region’s biggest employers with 30,000 workers.
Martin said many auto-parts makers have been setting up shop in Vigo to service PSA’s manufacturing needs.
One such firm is local parts supplier Antolin, which has opened a new seat factory in the region. That follows another recent expansion by Japanese supplier Denso.
Ivan Castano
