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PSA to Assemble Cars in Algeria

PSA Group has formed a joint venture with three companies in Algeria to build an array of undisclosed vehicles for the local market.

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PSA Group has formed a joint venture with three companies in Algeria to build an array of undisclosed vehicles for the local market.

The partners plan to begin limited operations at a facility in Oran in 2018 and achieve full-scale production in 2019.

PSA will invest €100 million ($117 million) for a 49% stake in the venture. The remaining equity will be divided among Condor Electronics, a major seller of household appliance and cell phones; pharmaceutical company Palpa Pro and machine tool supplier PMO (Enterprise Nationale de production de Machines-Outils).

PSA sold 383,500 vehicles in Africa and the Middle East last year. The French carmaker says its new venture will help it reach a sales target of 700,000 annual sales in that region by 2021. The company will be joining rivals Renault and Volkswagen, which already have local assembly operations in Algeria.

Gardner Business Media - Strategic Business Solutions