PSA is planning to expand its presence in the Maghreb, with factories in Morocco and a potential plant forecast for opening this year in Algeria.
Rabat – French car manufacturer PSA group is full of praise about Morocco’s strategic geographical location, saying that it helps the company to reach international markets in the region.
For PSA, Morocco is a “choice destination,” according to the director of the PSA in the Maghreb region, Yves Peyrot des Gachons.
“We choose Morocco because it is an extremely favorable terrain when we want to establish ourselves as close as possible to the markets,” des Gachons told Largus.
In June, the group opened its automotive plant in Kenitra, with King Mohammed VI chairing the inauguration ceremony.
The company believes that the plant will increase Morocco’s automotive sector output, aiming to reach an annual production of 100,000 vehicles and related engines.
Morocco puts industrial sectors among its priorities, including the automotive and aeronautical fields.
For Head of Government Saad Eddine El Othmani, Morocco has already achieved its goal to lead car production in Africa.
El Othmani said that the country produced 400,000 vehicles in 2018.
The head of government is determined that car manufacturing in Morocco is set to reach one million per year by 2023.
Des Gachon acknowledged Morocco’s leadership in the automotive sector, remarking on the country’s “strong will” to develop the industry.
“The [Moroccan] minister of Industry [Moulay Hafid Elalamy] regularly reminds us of the objective of installing a production capacity of one million vehicles in the medium term,” the PSA official said.
The PSA official emphasized that Morocco has an “important industrial tradition,” including fabric automotive suppliers.”
“PSA was already a client of this Moroccan sourcing, twenty-nine equipment manufacturers have come to join us in Kenitra, “he explained.
Des Gachons pledged that several “beautiful things” will happen in the future, promising more fruitful projects on top of the Peugeot 208 produced in Morocco.
The production of the brand makes the company a leader in the region, he added.
The PSA official also shared his company’s ambition regarding the distribution network, emphasizing that “it deserves more capillarity, especially in medium-sized cities.”
Des Gachons announced the future opening of agencies “in Larache, Al Hoceima, Berkane, etc.”
Des Gachons also spoke about the renovation of sites, including a new concept store in Rabat that “offers a very digital experience, while in Casablanca, three new superb showrooms will open at the beginning of next year.”
Morocco has several international car manufacturers operating in its free industrial zones across the region, including PSA, Renault, and other car parts specialists.
PSA Group CEO Carlos Travers said last year that its plan in Kenitra is “one of the most efficient” factories.
PSA Group’s workforce in Morocco stood at 350 in 2017 might have reached 2,200 by the end of 2019, in addition to 20,000 indirect jobs as estimated by the company.