PSA Unveils European Powertrain Plan, Minus Germany

PSA Group has reported new powertrain production assignments for its facilities in Europe—except in Germany, where labor talks continue about hiking efficiency at its Opel unit.

The plan will double capacity in France to make PSA’s 3-cylinder turbocharged gasoline engine at factories in Douvrin and Tremery. The company also will begin producing the engines at facilities in Tichy, Poland, and Szentgotthard, Hungary.

PSA also will slowly introduce licensed production of Aisin automatic transmissions through 2020 at its plant in Valenciennes, France. Those gearboxes currently are built in China and Japan. In addition, the company will increase capacity to make manual transmissions at factories in Metz-Borny, France, and Aspern, Austria.

Finally, PSA will prepare the Tremery facility to begin making electric motors in 2019. Production will be handled through a €220 million ($272 million) joint venture with Japan’s Nidec Corp. that was announced in December. The partnership aims to hike annual output to 900,000 motors by 2022 for PSA’s electrified powertrains.

PSA confirms it will invest in new products in Germany. But it reiterates that investments to do so will depend upon more “competitive” labor agreements. The company has repeatedly complained about Opel’s poor productivity since acquiring the unit from General Motors Co. last August.