PSA raises transmission production on China demand
PARIS (Reuters) -- PSA/Peugeot-Citroen is stepping up production of transmissions at a plant in Valenciennes, northern France, to meet strong Chinese demand, the French carmaker said.
PSA said it would hire about 50 temporary workers and add new shifts to raise daily output to 1,900 AL4 transmissions in June from 1,300 currently.
The Valenciennes plant employs 2,200 workers and supplies transmissions for about half the Peugeot and Citroen vehicles sold worldwide.
On Wednesday, PSA signed a long-awaited framework deal with state-owned Dongfeng Motor Group that will see the Chinese carmaker and the French government take matching 14 percent PSA stakes in a 3 billion euro ($4.1 billion) capital increase. The deal will bring the French carmaker much-needed cash and greater access to Asian markets.
PSA's deliveries in China climbed 26 percent to 557,000 vehicles last year.
Automotive News Europe contributed to this reportContact Automotive News