Groupe PSA optimizes its manufacturing base in Europe

• Improving performance of powertrain plants to fulfil orders for future Opel/Vauxhall models based on PSA platforms
• Preparing manufacturing facilities for the ICE energy mix transition as well as the electrification push
• Localising automatic gearbox production to meet shifting customer demand

In order to step up its development and boost its competitiveness in Europe, the Group has decided to:

• Increase the agility of its manufacturing base by producing components as close as possible to car plants,
• Adapt its output to customer expectations, taking into account technological and energy shifts.

These changes are also an opportunity to adjust production capacity for Group engines as the manufacture of Opel/Vauxhall models is gradually ramped up on Groupe PSA platforms and fitted with Groupe PSA powertrains and technologies.

In light of the above, the Group has decided to make three adjustments:

• Increase production of the 3-cylinder Turbo PureTech petrol engine – awarded “Engine of the Year” in its category for three years in a row – as close as possible to car plants. In addition to doubling production capacity in France, compared to 2016, already in progress in Douvrin and Trémery plants, the Group will be producing PureTech engines in Tychy (Poland) and Szentgotthárd (Hungary) from 2019 onwards.
• Increase production of gearboxes from 2019 with the manufacture under license of automatic gearbox in Valenciennes (France), set to reach full potential by 2020, thanks to a strategic partnership signed with AISIN AW. Until now, this component has been manufactured in Japan and China. The Group will also invest to produce additional volumes of manual ML gearboxes in Metz-Borny (France) and MB6 gearboxes in Aspern (Austria), in particular to equip its high-end and light commercial vehicles and serve growing needs driven by production of Opel/Vauxhall cars.
• Prepare the Trémery plant (France) to produce electrical motors from 2019 onwards, before acceleration from 2021 onwards, thanks to the joint venture signed with Nidec. They will support the electrification push, as 100% of the Group’s vehicle range will include e an electrified offering by 2025.

These decisions have been made based on a performance assessment of manufacturing sites and in accordance with the New Momentum for Growth commitments signed in July 2016 by five out of six trade union organisations. The new production allocations also take into account what has been presented to employee representatives as part of the Opel/Vauxhall PACE! plan.

Yann Vincent, Executive Vice- President, Manufacturing and Supply Chain, said: “What will make the difference will be our agility to prepare our manufacturing base to produce components that meet customer needs and respond to the energy shift, creating the conditions for a sustainable future through enhanced performance. Groupe PSA’s 15 component production plants in Europe, located in France, Germany, Austria, Hungary and Poland, are eager to propose the best quality and performance to our customers.”