Reports from Mexico and Europe say that the French car maker Peugeot still plans to build a plant in Mexico.

This follows a recent Renault announcement that it will return to the Mexican market to sell scenic models produced locally by Nissan, which the French automaker controls.

The issue of a Mexican Peugeot plant again became prominent during President Vicente Fox’s recent trip to Europe, Reforma business columnist Dario Celis Estrada reported.

Peugeot is said to have identified three possible locations in which to build a plant in Mexico: in the states of Aguascalientes, Guanajuato or San Luis Potosi.

But the firm has yet not decided where to locate the plant, Celis reported.

Last year Peugeot was also said to have initiated informal talks with several potential partners in Mexico, including Grupo Desc, Cansa, Grupo Alden and Grupo Quimico.