Peugeot reduces 208 output due to weak demand in Europe

Article by Christian A., on October 9, 2012

The demand for the Peugeot 208 subcompact has been weak in Europe due to the condition of the industry so its output will be reduced by PSA/Peugeot-Citroen. A Peugeot spokesperson told Automotive News Europe that the company is cutting producing and lowering its sales outlook for the 208.

The spokesperson declined to confirm reports from the media about Peugeot’s target to sell 140,000 units of the 208 in 2012 instead of the 175,000 it had initially set out to accomplish. Last Friday, the Wall Street Journal said that starting on Oct. 10, the hourly output of the 208 will be reduced at plant in Poissy, west of Paris, from 52 to 35. In addition, it will drop one of the three shifts in Poissy in early December.

A CGT union representative told Automotive News Europe that Peugeot will remove its night shift for the production of the 208 at Poissy at the end of November. He also said that Peugeot intends to get rid of 850 temporary worker positions at the site by the end of 2012. The Peugeot spokesperson said that the brand still hopes to get a 10% share in the subcompact segment in Europe by the end of 2013.

However, it believes that overall industry volumes in the sector have to be lower than the predictions made earlier this year. In early 2012, Peugeot made a prediction that it will sell 550,000 units of the 208 throughout the world and 420,000 units in Europe in 2013.

According to Deutsche Bank analyst Gaetan Toulemonde, the 208 sales were affected by the economic downturn. Toulemonde said that the overall Europe market is currently weak but that the second half of this year will be weaker than anticipated a few months ago.

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries