Production of the Peugeot 208 has officially started at PSA Group’s new factory in Kenitra, Morocco.
PSA Group invested 557 million euros ($629 million) in its new manufacturing facility, which will produce models based on their latest CMP compact car architecture. The annual capacity of the new factory is 200,000 vehicles.
The new Peugeot 208 will be joined by more PSA Group models, including new versions of the Peugeot 301 and Citroen C-Elysee, which are small sedans offered mainly in developing markets. The new plant will export its cars to 80 countries according to PSA Group.
“At the heart of the Middle East and Africa region, Morocco is an historic and strategic market for our Group and its four brands, Peugeot, Citroën, DS and Opel,” said Jean-Christophe Quémard, member of the Managing Board of Groupe PSA said. “We are forging a unique partnership in Morocco’s automotive industry, thanks to the help of all our partners and the support of the Moroccan authorities.”
The new factory will eventually employ 4,500 workers at full capacity, which is expected to be achieved in the next two years. PSA Group expects the new facility to create around 20,000 direct and indirect jobs.
Rival automakers have also factories in Morocco, thanks to the low wages and big incentives, including Renault with its two factories in Tangiers and Casablanca.
Peugeot will also continue building the 208 hatchback at its Trnava factory in Slovakia.