PSA Peugeot Citroen to end UK based production plant

PSA Peugeot Citroen to end UK based production plant

PSA Peugeot Citroen is the Europe’s second largest automobile manufacturer. The company has said that they would be ending production of their cars in the UK market by next year.

This would see them cutting as many as 2,300 Jobs. Peugeot has said that this step is necessary considering the high costs of manufacturing and transportation in the country.

They are now planning to move its plant in Ryton, England to a single work shift in July. Production would be ceased completely sometime next year. Peugeot said in a statement: “An industrial study conducted during the first quarter of 2006 has clearly confirmed the weaknesses for the Ryton plant — high production and logistical costs — which mean that the group is unable to justify the investment needed for the production of future vehicles”

The company is facing falling sales, as consumers are no longer interested in their aging 206-and 307- model compacts and Picasso van. Volkswagen and Renault are picking up their stake in the market.