Stellantis Will Use Factory in RJ to Restore Potential of Peugeot and Citroën in Brazil

The Priority Is to Expand Sales of Peugeot and Citroën in the Country, to Maintain the Standard Currently Led by Fiat. Stellantis Will Bet on a Well-Known Model from Citroën to Take the First Step in the Operation of the Factory in RJ

The automotive group Stellantis is planning to boost the sales of Peugeot and Citroën vehicles in Brazil, using the RJ factory as a central point, as both brands have faced many difficulties in expanding their shares in the country for years, even after the group was formed in 2021 and ended the year as the sales leader across South America.

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Stellantis Claims to Have Plans for the Factory in RJ

Stellantis, whose name means “to shine with the stars,” was born from the merger of the Italian-American Fiat Chrysler and the French automotive group PSA, of which the Peugeot and Citroën brands are part. The current formation of the automotive group inherited the Porto Real factory, located in RJ, which is responsible for manufacturing cars from Peugeot and Citroën, including the engine lineup.

The factory has the capacity to assemble 150,000 vehicles per year. However, both brands ended 2021 with sales of only around 52,900 vehicles, according to information provided by the National Federation of Motor Vehicle Distribution, Fenabrave.

According to the president of Stellantis for South America, Antonio Filosa, on Friday (7), the factory in Porto Real, RJ, is underutilized, but Stellantis intends to launch one of the group’s main releases, the Citroën C3. Filosa is hopeful that the Citroën C3 could saturate the factory quickly. The president of Stellantis did not provide further details regarding investments and minimized any disclosures related to the group’s results.

Peugeot and Citroën Ended 2021 on a Low Note in the Brazilian Market, Lagging Behind a Key Group Partner, Fiat

With a significant increase in market share to nearly 22% in the Brazilian market, Fiat, one of the main brands of Stellantis, ended 2021 as the brand that made Stellantis the sales leader in Latin America, unlike Peugeot and Citroën, whose sales in the country were around 1.5% each, well below expectations.

Filosa spoke a bit more about the factory in RJ, where growth is expected to be much more significant. The president of Stellantis also discussed launches from Fiat in Betim/MG and Jeep in Goiana/PE, which were successful. The group believes that if success is repeated in the launches of Peugeot and Citroën in Porto Real, it will be great news for the group.

Sales Estimates

In December of last year, the president of Stellantis estimated that the Brazilian automotive market had no reason not to expect sales of at least 2.4 million to 2.45 million units. However, in an interview on Friday (7), Filosa reported that, given the impacts of the Omicron variant of the Coronavirus, it is necessary to reassess these estimates, concluding by saying that the hope was for this new wave to be shorter.

According to the National Association of Motor Vehicle Manufacturers, Anfavea, the estimate is that sales of light vehicles in the country will increase by around 8.4% this year.