PSA investing $113 million in its Rennes plant.
Citroen has announced it will produce its next SUV in its plant in Rennes, France, starting in 2018. Until now it was believed the crossover will be manufactured outside Europe, but the final decision was made possible “by the stakeholders’ commitment to work together to secure the plant’s future.”
The new SUV will be part of the so-called Push to Pass plan of PSA, which includes 34 new models in the next few years. Based on the EMP2 platform, the vehicle will be assembled alongside the Peugeot 5008 and the Citroen E-Mehari, totaling the annual production at the plant at 100,000 vehicles. To achieve its plan, PSA will invest no less than $113 million (€100 million) to upgrade the factory with several “ground-breaking solutions,” bringing a “modern, agile manufacturing processes.”
Citroen’s new SUV will be highly influenced by the Aircross concept and will serve as a replacement for the slow-selling C4 Aircross. The French manufacturer sold 4,832 units of the rebadged Mitsubishi ASX in the first five months of this year, according to JATO Dynamics.
The same EMP2 architecture will also be used for a base of several brand new eco-friendly vehicles starting in 2019. Plug-in hybrid crossovers and SUVs are on the agenda, offering a “high-performance electric four-wheel drive” system and an electric-only range of 37.2 miles.
Source: Citroen via Automotive News
• Production of the new market-winning Citroën vehicle was initially set to be assigned to a plant outside Europe
• The final decision was made possible by the stakeholders' commitment to work together to secure the plant's future
• €100 million will be invested to increase output in Rennes by 60% by 2018
As part of the product offensive included in the Push to Pass plan, which includes 34 new models, the Rennes plant will start manufacturing a new market-winning vehicle for Citroën by 2018. The C84 project is part of a dynamic product strategy that will see four new models launched by the brand in less than 18 months.
Based on the EMP2 platform, the new crossover will be manufactured alongside the future Peugeot 5008 and the Citroën E-Mehari.
With these three models, output at the plant will ultimately reach 100,000 vehicles per year compared with 60,000 currently.
The Rennes plant was chosen after a study carried out by PSA Group over several months, reflecting the performance measures taken by the plant and the commitments made to upgrade operations.
The plant upgrade plan puts forward several ground-breaking solutions, with the introduction of modern, agile manufacturing processes. Work will begin in early 2017 and is scheduled to be completed in 2018. The upgrade represents a €100 million investment, which will also benefit other automotive industry players in Brittany.
The decision to manufacture the new vehicle in Rennes was made possible by the commitment of the entire workforce and the shared drive by management and the signatory trade unions to come together to secure the plant's future.
On 29 April, an agreement called the "Contract for the Future of Rennes" was signed at the plant, with the support of five of the Group’s six trade unions (CFDT, CFE/CGC, CFTC, FO and SIA/GSEA), representing more than 80% of employees. The decision to manufacture the new vehicle in Rennes was subject to this agreement, which will come into force on 1 January 2017.
Commenting on the announcement, Carlos Tavares, Chairman of the Managing Board of PSA Group, said: "The decision to manufacture this new vehicle in Rennes shows that, when stakeholders are committed to working together to secure the future of a manufacturing plant, they can create the performance conditions necessary in a continuous efficiency improvement process."