PSA Peugeot Citroen (PEUP.PA) said on Friday it had chosen a French factory over a rival Spanish plant to expand engine production, prompting a visit by President Francois Hollande to highlight a bright spot in France’s gloomy labor market. The eastern French plant beat out Peugeot’s factory in Vigo, Spain, for the additional 200,000 engines per year. Manufacturing boss Yann Vincent said Peugeot’s decision reflected “work done by the Trémery site to meet competitiveness targets”, including productivity concessions by unions.