According to sources with knowledge on the matter, PSA Peugeot Citroen plans to move the future generation of the subcompact C3 from its current location in France to a facility in Slovakia.
According to the people, who asked to remain anonymous because they are not allowed to publicly discuss unannounced moves, added the switch is part of a broader plan that calls for mass-market small cars, which have a small earnings margin, to be moved to parts of Europe where production costs and salaries are lower.
Data from JATO Dynamics shows the C3 to be Citroen’s most successful model of the brand in Europe, with sales of 48,614 units in the January to April period, which means it’s accounting for around 20% of the company’s deliveries in the region. The model is currently being produced in a French manufacturing facility, located in Poissy, near Paris.
“They’re starting technical operations on the new Citroen model in the coming weeks … it’s going to be in eastern Europe, in Trnava,” one source told Reuters.
“Citroen will produce about 10 percent of the C3 models in Poissy and the rest in Slovakia,” adds Jean-Michel Prillieux, an analyst at Inovev.
PSA declined to comment but a spokesman did say the automaker has no plans to close or idle any of its French factories after last year pledged it in a deal signed with the labor unions. Nevertheless, two additional sources confirmed the decision to switch the next generation C3 to the Trnava plant.
Via Automotive News Europe
by Aurel Niculescu
) - Friday, May 23rd, 2014 - filed under Citroen
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