PSA will spend EUR 90m to produce a replacement for the current C segment Peugeot 5008 MPV/minivan at its Rennes plant.

The new model will be built on the EMP2 platform which cost EUR630m to develop. Production will start in mid 2016 with sales from the end of the year. It will be available worldwide apart from North America from which both Peugeot and Citroen withdrew almost three decades ago.

Production volume is pegged at 70,000 units a year from 2017, lifting the plant’s total output to about 100,000.

PSA industrial operations chief Denis Martin said: “I am particularly pleased today to confirm the decision to produce a new vehicle at the Rennes plant, as [soon to depart CEO] Philippe Varin promised in November 2012.

“The group has made firm commitments as part of its new social contract, in particular as concerns the production of new vehicles in its French plants. We are demonstrating that these commitments are being met.”