PSA mulls closing assembly lines at two French sites

Article by Christian A., on December 9, 2013

PSA/Peugeot-Citroen will decide early 2014 whether to shut down assembly lines at its Mulhouse plant in eastern France and its Poissy site near Paris. The French carmaker plans to start a study to help it determine whether to shut down the assembly lines at the plants. "We are launching an internal study in the next few weeks with a likely outcome in the first quarter of 2014," a PSA spokesman remarked.

PSA said in December that it would review the second of two production lines at both Mulhouse and Poissy sites; although the Poissy line was less likely to be closed. PSA has already shut down its Aulnay site near Paris in a bid to mitigate the effects of excessive capacity in Europe.

The French carmaker is currently preparing the ground for more politically sensitive cutbacks. In September, PSA chief executive Philippe Varin said that production line shutdowns were under consideration, while the carmaker is hoping to prevent site closures.

He told unions that the Mulhouse and Poissy sites could be affected by the cutbacks.

PSA builds the Citroen C4 and Citroen DS4 and the Peugeot 2008 at Mulhouse and the Citroen C3 and DS3 and the Peugeot 208 at Poissy. The French carmaker expects to build between 190,000 to 230,000 vehicles at its Mulhouse site and between 240,000 to 270,000 units at its Poissy plant in the coming years.

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