UPDATE: PSA Expands Capacity in Argentina

PSA Group says it will spend $320 million to expand production capacity at its Palomar manufacturing complex outside Buenos Aires, Argentina.

The two-year project was confirmed by Carlos Gomes, who heads PSA operations in Latin America, according to Reuters. Gomes did not indicate the amount of new capacity or whether new models will be added.

The Palomar facility currently produces small Peugeot and Citroen sedans, hatchbacks and small delivery vans in Agentina. PSA also operates an engine plant in the same region.

November car sales in Argentina rose 3% in November, and the country’s exports jumped 16%, Reuters reports. Yesterday the news service incorrectly reported that PSA's investment project involved a new factory.