Brazilian-built Peugeot 206 1.0-16V about to go on sale
Peugeot starts sales of its new Brazilian-built 206 with one-litre 16-valve engine on June 28. The model is the first Peugeot vehicle made in Brazil, writes Rogério Louro Alves.

The 206 is produced in the PSA plant in Porto Real, Rio de Janeiro state, that was inaugurated in February and also makes the Citroën Picasso.

Including the local 206, Peugeot expects to sell 38,000 vehicles this year, an increase of 76.7 percent over the 21,500 units shifted in 2000.

"We will sell 17,000 units of the 206 one-litre 16-valve in 2001, representing 45 percent of our total sales" said Peugeot do Brasil president Cees Hermanns.

To meet Brazilian market demand Peugeot is also making the one-litre, 16-valve version of the 206 in Argentina. PSA expects to produce in 12,000 of the cars in Brazil and 5,000 in Argentina this year.

When production capacity at the Brazilian PSA plant increases, Argentine assembly will cease.

Peugeot plans to sell 65,000 vehicles in Brazil next year with the new 206 accounting for 74 percent or 48,000 units.

At the official launch of the Brazilian 206 on June 19, Peugeot announced that it will build a second version with a new 1.6-litre 16-valve engine next year.

That engine will be produced from February 2002 in a new engine plant in front of the vehicle assembly plant at Porto Real.

Building the 1.6-litre 206 in Brazil will not stop Argentine production, begun in 1999.

"The Brazilian 206 1.6s will supplement Argentine production to meet local demand," Cees Hermanns said.

The Brazilian 206 is essentially the same as models built in Britain and France but its engine is made by a Brazilian Renault plant in São José dos Pinhais, Paraná state.

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