PSA Plans €700 Million Expansion in Spain

PSA Group says it will invest €700 million ($783 million) over the next four years to launch a new model and expand capacity at two factories in Spain.

About €640 million ($716 million) of the total investment will be used to prepare PSA’s Vigo plant for an unspecified new vehicle. Media reports suggest PSA is planning a small Peugeot-branded crossover vehicle. The Vigo plant currently assembles the Peugeot 301 sedan and Citroen Berlingo small van, Elysee sedan and Picasso MPV.

PSA says it will spend the €60 million ($67 million) balance for upgrades to its Villvere facility in Madrid. That factory makes the Citroen C4 Cactus mini crossover vehicle.