TREMERY, France -- PSA Group will start assembling batteries for its hybrid and electric cars at its plant in Trnava, Slovakia, and later at its plant in Vigo, Spain.
The company also expects to produce batteries at some of its other factories as sales of electric cars pick up, Peugeot's industrial director, Yann Vincent, said on Friday at PSA's engine plant here.
PSA currently buys batteries from South Korea's LG Chem and China's Contemporary Amperex Technology Co.
PSA expects rising demand for electric and hybrid vehicles and for vehicles with automatic gearboxes to offset falling demand for diesel and manual gearbox light vehicles, Vincent said.
Peugeot expects output of engines at its Tremery factory will fall to 1.7 million this year, down from 1.8 million last year due to falling demand for diesel vehicles.
PSA is electrifying the lineups of its Peugeot, Citroen and DS brands with models such as the e-208, a battery-powered version of its new Peugeot 208 small hatchback.