Europe: PSA increases production in Slovakia, joint venture with Mitsubishi to cease production in Russia again image

PSA Peugeot Citroen’s Slovak business unit is now mulling an increased yearly production that could soar past the 300,000 units mark by 2017 after the company has decided to introduce there a new production model.

The French company, the second largest automaker in Europe, has already registered a record production output at the Slovak plant in 2014, thanks to a faster recovery of the country’s economy that managed to outgrow the majority of euro peers. The Slovak economy is also benefiting massively from its internal automotive industry, with Peugeot, South Korea’s Kia and Germany’s Volkswagen having built last year a total of at least 970,000 autos. “The new model will enable us to improve utilisation of the Trnava factory. It creates conditions for raising capacity over 300,000 cars a year,” commented Remi Girardon, the boss of Peugeot’s Slovak division, for news agency Sita. The assembly facility, which builds small models, is seen increasing its production to 275,000 units in 2015 and at least keeping that level next year.

Meanwhile, in Russia the PSA Peugeot Citroen and Mitsubishi joint-venture has announced plans to stop output at their factory in Russia again this year and also reduce its workforce there by 100 positions. “The continuing deterioration of the market situation forces us to make painful decisions,” commented PCMA Rus, the Russian joint venture of the French and Japanese companies, in a statement. PSA and Mitsubishi first stopped building cars and SUVs there in February. Now, production of the Citroen C4 sedan and Peugeot 408 will idle between April 27 and July 10. The SUVs will cease output from April 27 until May 12. Mitsubishi will pause production of the Outlander and Pajero Sport.

Via Reuters, Automotive News Europe