Peugeot-owner to use Opel site to assemble engines

PARIS: Peugeot-owner PSA will use an existing Opel site in eastern Europe to assemble 200,000 petrol engines instead of building new capacity on its own site in Slovakia as initially planned, Les Echos newspapers said on Thursday.

Contacted by Reuters, a spokesman for PSA confirmed the engines will be assembled at the Opel site and said this was in line with the carmakers' merger plans.

The French carmaker agreed to buy Germany's Opel from General Motors in a March deal that valued the business at 2.2 billion euros.