PSA will complete production of small petrol cars

PSA will complete production of small petrol cars

October 15, 2020 0 By autotimesnews

The PSA Group has decided to completely discontinue production of the Peugeot 108 and Citroen C1.

According to available information, the PSA Group intends to abandon the city models – Peugeot 108 and Citroen C1, equipped with gasoline units. Thus, the company intends to exit the increasingly unprofitable segment before it can complete its merger with Fiat Chrysler.

Automakers in general have begun to rethink the production of models with internal combustion engines, which require expensive exhaust filtration systems to meet the new econo- mies. This, in turn, will increase the cost of some entry-level models of the A segment, in particular the 108 and C1.

“PSA is going out of business both at the plant and in the A segment, as it is proposed today, and for which manufacturers may have lost the most money in Europe,” said one source familiar with the matter.

The PSA group declined to comment on the future of the two vehicles, saying it is considering which products will best meet customer expectations in this segment, as well as meet EU carbon emissions targets.

“It means reflecting fresh and revolutionary ideas,” said a spokesman for the French brand.

The merger with FCA will expand the options available to PSA. The company is not yet ready to ditch its small models, and the Fiat 500 is already available as an electric vehicle (BEV).

“Current projects can be replaced with new ones, which will be possible through the merger with FCA,” added another source. “The merger is changing all the maps, especially when you consider that segment A, from the very first 500 cars to the Panda, is inseparable from the history of Fiat.”

PSA and FCA hope to complete their merger in the first quarter of 2021, resulting in a new company called Stellantis.