PSA Launches 307 Sedan Output in Argentina

PSA Peugeot Citroen officially kicks off production of its Peugeot 307 sedan at its plant in Buenos Aires.

The 307 becomes the fifth model to join the line at the facility, which also makes the Peugeot 206, 307 hatchback and Partner and the Citroen Berlingo.

PSA says the 307 sedan will hit the local market in July and gradually roll out in Brazil and other Latin American countries by October.

Sedans account for about a third of the Argentine new-car market and about half of sales in Latin America, PSA says. It is targeting full-year sales of 22,000 307s across the region.

The 307 launch marks a new phase in PSA’s 2005-2007 investment program in Argentina. The auto maker has earmarked 450 million pesos ($146 million) for capital improvements in the country through the end of next year, which also includes investment at its parts operation in Jeppener.

PSA says 1,000 new jobs will be created in all over the 3-year timeframe. Peugeot Citroen Argentina currently employs nearly 3,900 workers.

307 sales targeted at 22,000 units in the region.

Addition of the 307 sedan will take vehicle output at the plant to nearly 100,000 units annually. That compares with 17,800 units in 2002, when Peugeot Citroen Argentina employed 1,500 people.

PSA says its sales in Argentina through May are up 29% to nearly 29,000 units. That compares to an overall industry gain of 19%. Its market share stands at 14.6%.

In Brazil, PSA says sales of 37,600 vehicles have risen 38% in a market up only 10% overall. It controls 5.6% of the market.