French automaker Groupe PSA has signed a joint venture (JV) agreement with three Algerian partners to build cars in the North African country.
The Algerian partners include Condor Electronics, Palpa Pro and Entreprise Nationale de Production de Machines-Outils (PMO).
The joint venture will based in Oran and will manufacture cars for the local market. The production unit is expected to start its operations in 2019. But, local operations could gradually being in 2018.
As per the terms of the agreement, Groupe PSA will hold 49% of stake in the joint venture’s share capital. The total investment is expected to be €100m. Groupe PSA will also support the development of Algeria’s automotive industry by providing comprehensive upskilling and training programme for employees, to expand the local supplier base.
Groupe PSA Africa-Middle East executive vice president 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.”
Recently, the company also announced its plans to electrify its recently acquired Opel/Vauxhall brands as part of its strategic plan PACE! The new plan is expected to bring annual cost synergies in the Group to the extent of €1.1bn by 2020 and €1.7bn by 2026.
As part of the plan, it intends to make all the passenger carlines under the Opel/Vauxhall brand electric by 2024. Electrification will include pure battery electric, plug-in hybrid alongside an efficient internal combustion engine.
By 2020, the brand is expected to release at least four electrified carlines in the market including the Grandland X PHEV and the next generation Corsa as a fully electric vehicle.
