Inventory surpluses close some Renault and PSA Peugeot Citroen manufacturing units image

Renault and PSA Peugeot Citroen announced that are temporarily closing some plants during French national holidays in November, in order to make some inventory adjustments.

After the huge surpluses registered in 2008, when they accumulated inventory levels of 80 to 90 days., the two French car manufacturers have made inventory management a priority in order to avoid ending up in case of weaker demand in the same situation.

Renault’s target is to reduce its inventory from 50 to 60 days, while the PSA is is targeting 60 days by year-end, against 76 days in late June.

“The days not worked must not be seen as heralding a fall in demand is a classic fit two months of the end of the year,” said a Reuters spokeswoman for Renault.

The press reported on Monday and Tuesday as work at the Renault plant in Douai (Nord), which is producing Scenic, stop from Wednesday for nearly a week, while in Sandouville (Seine-Maritime) , Flins (Yvelines) and Novo Mesto (Slovenia), the teams would make the bridge from November 1. In contrast, sites of Maubeuge (Nord) and Batilly (Moselle), respectively, responsible for Kangoo and Master manufacturing, are not affected by such measures.

The teams involved in this operation will receive their full salary, unlike the real short time, as in the automotive sector, the “days not worked” are drawn from a capital established at time of peak activity.

PSA Peugeot Citroën is closing the Aulnay-sous-Bois site for a week, where it produces Citroen C3. Also, it has set up the other plants in France which will close for a few days at the end of this month .

PSA also suspend production at company’s Slovak plant at the end of October as orders have fallen due to the tougher economic outlook in Europe.

“Apart from Aulnay and Trnava (Slovakia), on the other sites it comes to fine tuning,” said a spokesman for PSA.

Plants Aulnay and Trnava are both specialized in small cars, the most affected by the end of scrappage.

In September, the chief executive of the group, Philippe Varin, warned that the European market is becoming more uncertain in the climate of sovereign debt crisis. He added that if nothing appeared again in the order books, we had to prepare for more difficult times.