PSA Peugeot Citroen is the latest auto manufacturer to set up shop in Morocco, looking to increase sales to Africa:
PSA Peugeot Citroen plans to build a car factory in Morocco as part of an effort to increase its sales in Africa, following in the footsteps of French rival Renault SA, two people familiar with the matter said.
The plant would initially have a capacity of fewer than 100,000 vehicles a year, and Peugeot may announce the project publicly as early as June, according to the people, who asked not to be named because the talks are private. The first Moroccan-assembled vehicles would come from the middle to lower portion of Peugeot’s product range and be sold in the region, the people said.
The move comes as Peugeot, Europe’s second-biggest carmaker after Volkswagen AG, seeks to lower its reliance on its home region. The Paris-based company sold about 60 percent of its vehicles in Europe last year. Meanwhile, Morocco is familiar territory for Peugeot Chief Executive Officer Carlos Tavares, who helped oversee Renault’s ramping up of its factory in Tangier in his previous role as the French company’s director of operations…[Full Story]