Peugeot Scooters

Peugeot Scooters plans to relocate production of the model Citystar Air to France (Mandeure, Doubs) at the beginning of 2016. A 51% stake in Peugeot Scooters was acquired by the group Mahindra and Mahindra in October 2014. The Citystar Air production line has led to a 10% increase of production and a planned volume of 1,000 vehicle/year. The Citystar Air model has been produced in China during recent years.

The Mandeure site has been experiencing periods of technical unemployment due to a lack of activity, and the company's management is searching for solutions in order to replace the production of the models currently housed there as many lines will shortly be coming to an end. During 2015, the Mandeure site produced only 18% of Peugeot Scooters. Thus, the Citystar Air model represents a welcome addition to the sites production capabilities and increases its share of the total production of Peugeot Scooters to about 20%.  However, as several models are about to cease production, a more extensive backshoring strategy is required in order to guarantee Mandeure's future. 

Frédéric Fabre, Peugeot Scooters' CEO claims that Peugeot Scooters aims to increase the amount of vehicles produced in Mandeure during the next several years in order to develop sales in Europe. However, the company is also investing in Asian markets, primarily Vietnam and Indonesia.