France's PSA eyes Brazil expansion

10th October 2011, Comments 0 comments

French automaker PSA Peugeot Citroen expects to expand output in the growing Brazilian market after 2012 but does not currently intend to increase capacity at its Porto Real plant, its top Latin American executive said.

Carlos Gomes, chief of PSA's Latin American unit, said the company expects to boost capacity at its site in Rio de Janeiro from 160,000 to 220,000 units a year by 2012.

"We just confirmed that this capacity increase is taking place," he told AFP, saying it would mean 800 new jobs and adding, "we would like to go further."

Gomes said production may eventually increase to 300,000 and that an upgrading of the factory could be possible in the longer term.

PSA, which expects to capture 5.8 percent of the Brazilian market this year, is the fifth largest automaker in the Brazilian market, behind Fiat, Volkswagen, General Motors and Ford.

The French firm is eyeing a seven percent market share by 2015.

The comments come days after Renault said will invest 200 million euros ($266 million) in its plant in Brazil to ramp up its bid to dramatically boost its market share in Brazil.

Renault currently operates a factory in Curitiba, the capital of Parana state, where it produces its own line of cars and those of its Japanese partner Nissan.

© 2011 AFP

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