PSA may close assembly line at its Mulhouse plant in France

Article by Anita Panait, on November 22, 2013

PSA/Peugeot Citroen may shut down an assembly line at its Mulhouse site in France unless output rises to more profitable levels. PSA will also review production level at its Poissy plant near Paris. A PSA spokesman remarked that it is not viable to maintain two production lines if the output is below the threshold of 250,000 vehicles.

He noted that the Mulhouse site’s two production lines only built 224,000 vehicles in 2012, just half of the plant’s annual capacity of 452,000 cars.  PSA has been hit by excessive production capacity caused by the current slump in demand for vehicles in Europe. The carmaker has already closed its site in Aulnay, near Paris. PSA chief executive Philippe Varin remarked in September that production line shutdowns were being considered and told unions that sites in Mulhouse and Poissy could be affected.

Mullhouse is home to the Peugeot 2008 subcompact crossover and Citroen C4 and DS4 compact models, while Possy is home to the Citroen C3 and DS3 and Peugeot 208 subcompacts. But since European markets are slowly recovering, the Poissy site may not lose the assembly line at all, the PSA spokesman said, following a report by French newspaper Le Figaro that one line would be closed or mothballed at each site.

PSA is expecting annual production of between 190,000 and 230,000 vehicles at its Mulhouse site in the next few years, which is below its own production threshold for the two lines, and between 240,000 and 270,000 at Poissy. PSA aims to fully utilize all its plants in Europe by 2016.

Topics: psa

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