French automaker Peugeot will transfer its manufacturing and assembling of the Peugeot 3008 to its Vietnamese partner, Thaco Group.

The Peugeot 3008, a five-seater compact crossover launched in 2009, is one of the carmaker's strategic ventures into the global market and will provide a competitive option for Vietnamese customers.

The 2.0L diesel engine and six-speed manual model will be manufactured and assembled at Chu Lai Open Economic Zone in central Quang Nam province.

This is the second contract signed by the French automaker and Thaco Group. The first deal was signed in April to provide a distribution network and local production for its 408 model.-VNA