Sevel Sur is considered one of the industry’s most profitable JVs, but the Fiat-PSA Peugeot Citroen collaboration faces stepped-up competition from automakers including Opel, Mercedes, Renault and Volkswagen.
Each PIVE program offered subsidies to new-car buyers who had to show they were scrapping a model 10 to 12 years old. But because none set a minimum ownership period, some old vehicles changed hands without leaving the junkyard.
The facility’s future has been in doubt since before it lost a program to build a new CUV to a competing plant. But launch of the new C4 Cactus appears to have turned the Madrid operation’s fortunes around.