PSA will sign deal to build Morocco plant, labor chief says

PSA/Peugeot Citroen's proposed new plant in Morocco will have an initial annual production capacity of 90,000 vehicles and engines, which may eventually be doubled, a union representative at the French carmaker said.
The factory will build models the size of the Peugeot 208 subcompact and 308 compact hatchback cars, reports said. The plant will be located near the city of Kenitra, 47km (30 miles) north of the capital, Rabat, Jean-Pierre Mercier, leader of France's CGT labor union, said.
Morocco has become an important base for the aerospace and auto industries thanks to its skilled workforce, financial incentives and wage costs that are four times lower than in France.
The project is PSA's first manufacturing investment under the watch of CEO Carlos Tavares as the automaker strives to reduce reliance on Europe by boosting car sales in emerging markets. PSA sold about 60 percent of its vehicles in Europe last year.
Tavares, who left rival Renault to head PSA more than a year ago, is following the strategy of his former boss, Renault CEO Carlos Ghosn, who pushed the French competitor into markets abroad. Renault already has plants in Morocco, in the cities of Tangier and Casablanca, as well as in Algeria.
Read more at Automotive News.