Trying to reduce inventories due to declining demand, PSA Peugeot Citroen and Renault cut their global production by 6.9%.
In the first three months Peugeot Citroen cut its global production of cars and light commercial vehicles by 10% compared to 2011, the reduced output reflecting a drop of 15% outside France and production at French plants down 2.3%. Renault also cut its global output by 2.5%, which translated in a 27% downsize at its South Korean subsidiary Renault Samsung Motors. In the first quarter Renault cut production in France by 13%.
Peugeot estimates that its European factories are working at about 20% below capacity, and at the end of March they had inventories which represented 70 days of sales, the company targeting a year-end level of about 61 days. At local rival Renault, inventories of finished vehicles represented 69 days of sales by the end of March. This year European auto market is expected to fall 6% compared to 2011.