Peugeot-Citroen closes Coventry

PSA Peugeot Citroen has announced it will cease production at its Ryton plant in Coventry (UK) in 2007, axing 2300 jobs.

CEO Jean Martin Folz told staff and trade unions the news late last month following a "detailed study" into its European facilities during the first quarter of this year, which revealed weaknesses such as high production and logistical costs.

PSA says this, combined with reduced demand and "intense competition" in Europe makes it "unable to justify the investment needed for the production of future vehicles" at Ryton, which currently produces Peugeot’s 206.

Although the 206 will continue on sale alongside the larger 207 in Europe, phase one of the Ryton shutdown will comprise a move from two shifts to one from July, with production to cease in mid-2007.

PSA says it will work with unions to "provide a support package for its staff and to help as many as possible to find alternative employment".