PSA has started Argentine production of the one-litre, 16-valve Peugeot 206 at its Palomar plant in Buenos Aires, to help meet expected strong demand in Brazil. Argentine production of the one-litre version is exclusively for Brazil where Peugeot do Brasil expects to sell about 17,000 units this year but can build only about 13,000 at its new plant in Porto Real, Rio de Janeiro state.