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PSA Peugeot Citroën is to produce a new "core range" vehicle aimed at "emerging countries" at its plant at Vigo in Spain.

The new car is intended as the first phase in a worldwide programme, PSA says, and "will respond to the needs of the middle classes in a number of countries with fast-growing automotive markets".

Initial sales will be in "the Mediterranean Basin", the Middle East and Africa, and both Peugeot and Citroën versions will be made.

Vigo is already PSA's biggest manufacturing site and produced 384,000 vehicles in 2009, including the C4 Picasso, the Peugeot Partner and the Berlingo vans.

• PSA has also announced that Grégoire Olivier, a member of its managing board, will now take charge of Asian operations and will be based in Shanghai in China. This is the first time PSA has put a main board member in the Far East.

© PE Publishing Ltd, 2010