PSA Will Stop Production in Slovakia for 21 Days image

PSA Peugeot Citroen announced it will stop production in Slovakia for 21 days in the fourth quarter due to decreased demand in the auto market.

Peugeot previously declared it loses about 350 euro ($450) for each car sold in Europe and that is planning to cut 10,000 jobs. Now the automaker will close a facility in the western Slovak town of Trnava where it manufactures the Citroen C3 Picasso and the Peugeot 207 models.

“Demand for new cars in Europe has been falling continuously over the past 11 months. The Trnava assembly plant of PSA Peugeot Citroen Slovakia decided to reduce number of production days due to the falling demand,” said PSA Peugeot Citroen Slovakia.

Earlier this year Peugeot has closed this plant for 12 days to match production with demand, but the company said it doesn’t plan to do any job cuts in Slovakia. The Trnava facility manufactures 300,000 vehicles annually, but last year it only produced 177,000 units, mainly exported to Italy, Germany, Spain and France.

Slovakia, which is Europe’s second poorest economy, relies on the auto exports as the country’s auto industry is centered around facilities owned by Peugeot, South Korea’s Kia Motors and Germany’s Volkswagen.