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French auto giant, Groupe PSA, has pumped a whopping €100 million into a joint venture with three Algerian partners to produce vehicle models that will enable its brands meet demand from Algerian customers, by offering cars with the highest levels of quality, safety and environmental protection.
An agreement with the Algerian partners – Condor Electronics, Palpa Pro and Entreprise Nationale de Production de Machines-Outils (PMO) – was signed recently for the production unit to be fully operational in 2019 with local operations gradually commencing as from 2018.
Executive Vice President, Africa-Middle East of Groupe PSA, Jean-Christophe Quémard, co-signed the agreement in Algiers with the Algerian project partners in the presence of Youcef Yousfi, Algerian Minister of Industry and Mining, and Bruno Le Maire, French Minister of the Economy, Finance and Industry.
The agreement to create an Oran-based manufacturing company to build cars for the Algerian market was part of the France-Algeria joint economic committee (COMEFA).
Under the terms of the agreement, which authorises the project’s gradual roll-out, Groupe PSA will hold 49% of the new joint venture’s share capital, representing a total investment of some €100 million. Groupe PSA will also support the development of Algeria’s automotive industry with a comprehensive up-skilling and training programme for employees as well as help expand the local supplier base.
Commenting on the new agreement, Jean-Christophe Quémard said: “Algeria is one of Groupe PSA’s historical markets and we are particularly proud to set up a manufacturing base there. The country is at the centre of the Middle East and Africa region, which is a key driver of profitable international growth as part of our Push to Pass plan. The agreement will allow us to have production capacity in the heart of the region and thereby achieve our goal of selling 700,000 vehicles by 2021.”
Groupe PSA sold 383,504 vehicles in the region in 2016.
