French car maker Peugeot to invest $320m in Argentina

HOUSTON (ICIS)–French car maker Peugeot-Citroen (PSA) will invest $320m in Argentina, the Argentine government confirmed on Wednesday.

The investment includes modernisation and a new platform for the production of new vehicles, beginning in 2019, at PSA’s El Palomar plant near Buenos Aires.

Argentina’s car production has been hit by the regional recession, particularly in Brazil, which is a big market for cars made in Argentina.

The automotive industry is a major global consumer of petrochemicals which contributes more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).

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