French auto giant to setup assembly plant in Walvis Bay

French car manufacturer, Groupe PSA announced earlier this month that it would start assembling Peugeot and Opel brands in Walvis Bay in the second half of 2018.

Under an investment agreement with the Namibian Government, PSA, whose brands also include Citroen, DS and Vauxhall, will reach output capacity of 5,000 vehicles per year at the plant.

The initial models will be two 4x4s, the Opel Grandland X and Peugeot 3008, but other products will follow to meet customer demand, the group announced. The deal, in which Peugeot will form a joint enterprise with the state-owned Namibia Development Corporation (NDC), aims at the expanding market in the Southern African Customs Union, which comprises Botswana, Lesotho, Namibia, South Africa and Swaziland.

The investment is part of the “long-term strategy of Groupe PSA to increase its sales in Africa and the Middle East, consistent with our target to sell one million vehicles in 2025,” said the executive vice president for those regions, Jean-Christophe Quemard.