A New Vehicle to Roll off the Production Line at the PSA Plant in Rennes

Regulatory News:

PSA (Paris:UG):

As part of the product offensive included in the Push to Pass plan, which includes 34 new models, the Rennes plant will start manufacturing a new market-winning vehicle for Citroën by 2018. The C84 project is part of a dynamic product strategy that will see four new models launched by the brand in less than 18 months.

Based on the EMP2 platform, the new crossover will be manufactured alongside the future Peugeot 5008 and the Citroën E-Mehari.

With these three models, output at the plant will ultimately reach 100,000 vehicles per year compared with 60,000 currently.

The Rennes plant was chosen after a study carried out by PSA Group over several months, reflecting the performance measures taken by the plant and the commitments made to upgrade operations.

The plant upgrade plan puts forward several ground-breaking solutions, with the introduction of modern, agile manufacturing processes. Work will begin in early 2017 and is scheduled to be completed in 2018. The upgrade represents a €100 million investment, which will also benefit other automotive industry players in Brittany.

The decision to manufacture the new vehicle in Rennes was made possible by the commitment of the entire workforce and the shared drive by management and the signatory trade unions to come together to secure the plant's future.

On 29 April, an agreement called the "Contract for the Future of Rennes" was signed at the plant, with the support of five of the Group’s six trade unions (CFDT, CFE/CGC, CFTC, FO and SIA/GSEA), representing more than 80% of employees. The decision to manufacture the new vehicle in Rennes was subject to this agreement, which will come into force on 1 January 2017.

Commenting on the announcement, Carlos Tavares, Chairman of the Managing Board of PSA Group, said: "The decision to manufacture this new vehicle in Rennes shows that, when stakeholders are committed to working together to secure the future of a manufacturing plant, they can create the performance conditions necessary in a continuous efficiency improvement process."

About PSA Group
With its three world-renowned brands, Peugeot, Citroën and DS, the PSA Group sold 3 million vehicles worldwide in 2015. Second largest carmaker in Europe, the PSA Group recorded sales and revenue of €54 billion in 2015. The Group confirms its position of European leader in terms of CO₂ emissions, with an average of 104.4 grams of CO₂/km in 2015. With a fleet of 1.8 million connected vehicles on the road worldwide, the Group is on the cutting edge of innovation in this field, and is expanding its services as a mobility provider. It is also involved in financing activities (Banque PSA Finance) and automotive equipment (Faurecia). For more information, please visit groupe-psa.com/en

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