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.

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.