PSA Peugeot Citroën will spend EUR300m (US$405m) between now and 2020 to turn its main Mulhouse factory in eastern France into a flexible, single line production facility.
The announcement was made at a meeting with the plant’s works council on Thursday.
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Mulhouse will be the first PSA plant in Europe to undergo what the company describes as ‘end-to-end modernisation’.
The factory will also launch two new models based on the EMP2 platform which underpins the Peugeot 308 and Citroën C4 Picasso. The EMP2 platform will eventually form the basis for more than half of all Peugeot-Citroën models.
The company said in a statement that the shift to single flow production will reduce manufacturing costs while ensuring skills are maintained and developed.
Plant manager Corinne Spilios said the investment was a huge challenge for Mulhouse but it would make Mulhouse “one of the best European plants in the C and D segments, with superior quality and competitiveness”.
Total annual capacity at Mulhouse will remain at around 200,000 vehicles.
