PSA to shut down one of two Peugeot shifts at Poissy site

Article by Anita Panait, on January 31, 2014

PSA/Peugeot-Citroen will get rid of one of two shifts that produce the Peugeot 208 at its Poissy site in France as it tries to cut excessive capacity. PSA said in December 2013 that it was launching an internal study to determine whether to shut down assembly lines in Poissy or at its Mulhouse site that builds the Citroen C4 and Citroen DS4 as well as the Peugeot 2008. PSA builds the Citroen C3 and DS3 alongside the 208 in Poissy.

The French carmaker has already shut down its site in Aulnay near Paris as it struggles with overcapacity during a decline in European auto sales. PSA chief executive Philippe Varin said in September 2013 that they had been considering production line shutdowns as they would avoid site closures.

He told unions that Mulhouse and Poissy could be affected by the line shutdowns. PSA plans to shift the affected workers to other positions within the company, PSA spokesman Pierre Olivier Salmon disclosed.

Christian Lafaye, head of the FO union, said that around 180 workers at the site near Paris will be affected by PSA’s decision. The Peugeot 208 is the carmaker's best-selling model in Europe with 11-month deliveries of 222,487, according to JATO Dynamics.

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