PSA Peugeot Citroën, the second largest car manufacturer in Europe, is set to invest 700 million euros ($785 million) in Spain over the next four years. The French car maker is planning to produce a new car in the country from 2020, according to a company spokesman.
640 million euros will go to PSA’s factory in Vigo, northern Spain, as for the rest of the bulk, it shall be destined for its operations in Madrid, said the spokesman, approving statements made by Chief Executive Carlos Tavares during a visit to the region on Wednesday.
No details were revealed by the company whether the new car shall be produced in Spain.
Statements on similar investment had been announced earlier in May by French rival Renault on the probability of devoting over 600 million euros into a new Spanish project and on the production of new vehicles.
Spain has been without a new government since last December after an inconclusive election, and voters are set to return to the ballot box at the end of June, raising fears its economic recovery will suffer if investors are tempted to stay away during a prolonged period of uncertainty.
But growth has so far held up at a steady pace, underpinned by strong consumer spending, and some investments have continued to roll in, including in a thriving car sector that has helped Spain claw its way back from a deep recession.