Peugeot in Slovakia: 130 million euros for production

One of the largest car corporations in Europe PSA Peugeot Citroen announced on Monday about its plans to invest in the Slovak car industry 130 million euros. These funds will be directed to the development of a new model at Peugeot factory in Trnava.

AFP agency, referring to the executive director of the PSA Phillip Varan, reports that production of a new model is planned to be launched in 2012. Type and make of the vehicle are not disclosed.

Now Peugeot plant in Trnava is one of three largest car industries in Slovakia, along with Volkswagen and KIA. Nowadays at the factory operate two major assembly workshops. Peugeot plans to launch the third production line and increase production of cars in 2012 up to 300,000 units.

Peugeot's new program in Slovakia will allow creating 900 jobs.

At present Slovak plant of Peugeot sells its products primarily to Germany, France and Italy. Because of the global financial crisis, the company was forced to redirect part of the facilities for production of small-sized cars.

By the end of 2010 the volume of cars produced on the Peugeot plant in Slovakia was amounted to 187,000 vehicles, at the same time in 2009 there were produced 205,000.

The basic models, which are produced at the Peugeot in Slovakia, are Peugeot 207 and Citroen C3 Picasso.

Peugeot announced its investment program after its key competitors in Slovakia - KIA and Volkswagen - which reported on plans to expand production in early 2011.