Peugeot-Citroen Planning Global Small Car for Developing Countries

Published Jun 29, 2010 Poor So-So Pretty Good Good Excellent 3 Ratings Just the Facts:

PSA is working on two low-cost models for emerging nations.

A small global compact and midsize sedan are in the works to be sold in Brazil, Russia, India, China and Iran.

PARIS French automobile group PSA Peugeot-Citroen is planning to launch production of two new low-cost models, both of which were specially designed for emerging markets, notably the BRIC countries (Brazil, Russia, India and China), as well as Iran.

According to French paper Les Echos , the first mdel is known in the company as the “global small compact,” while the second is a midsize sedan (code name M3-M4).

Financial details of the project were not disclosed.

Experts believe that the production of the new budget compact will be probably established by PSA in China and Latin America, and possibly in Iran, while the new sedan might be produced at a PSA plant in Russia.

In order to reduce costs, PSA is expected to launch production of the compact model in partnership with Mitsubishi. The latter is already known to be designing its own small car, which, in addition to Japan, could be also produced in Asian countries including Thailand, India and China, as well as in Latin America.

The Mitsubishi small car may provide the basic platform for new models that would wear Peugeot and Citroen badges in emerging markets around the globe.

According to earlier reports, PSA's new budget cars for emerging markets would be based stylistically on the 207 and C3 models.

Analysts in Europe believe that the new sedan might be slightly larger, which would allow the company to classify the new model as midsize.

Source: Edmunds

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