French car giant Peugeot-Citroen is to end production at one of its main UK factories with the loss of 2,300 jobs. Posted on 04/18/2006 2:22:28 PM PDT by M. Espinola
French car giant Peugeot-Citroen is to end production at one of its main UK factories with the loss of 2,300 jobs.
The factory at Ryton in Coventry will stop making the Peugeot 206 model next year.
The decision was given to union officials who had been summoned to a meeting with company bosses. Union sources said they had been fearing bad news but expressed shock at the scale of the announcement.
Derek Simpson, general secretary of Amicus, said: "This is disastrous news for British manufacturing. It is inconceivable that workers in France would be laid off on this scale.
"Weak UK labour laws are allowing British workers to be sacrificed at the expense of a flexible labour market."
The union said there would be an "enormous" impact on the local economy, estimating that every job at Ryton sustained another three in service firms.
Thousands of other jobs depend on the Ryton factory and the decision is yet another blow to the car industry in the West Midlands following last year's collapse of MG Rover.
Jean Martin Folz, chief executive officer of PSA Peugeot Citroen, said the plan followed a detailed study during the first quarter of 2006 by the group of its industrial cost effectiveness which had "clearly confirmed the weaknesses for the Ryton plant".
The company blamed high production and logistical costs which it said meant the group was unable to justify the investment needed for the production of future vehicles.
It said: "These internal factors, together with reduced demand and intense competition in Europe, have led the group to come to this difficult conclusion, having already reduced production at a number of other European sites at the end of 2005.
"The group's proposal is that production at Ryton is brought to a close in two phases; in the first instance the factory, which today operates two shifts, moves to a single shift in July 2006, with production not continuing beyond mid 2007. For the group, 2,300 jobs are affected.
"Having presented the proposal to its staff at the plant, the group will now enter into consultation with the trade unions.
"The group remains committed to its social responsibilities and will work closely with trade unions and Government throughout the coming months to provide a comprehensive support package for its staff and to help as many as possible to find alternative employment."
That's a sharp little car!
That looks like something which would be roaming over moon dust lol
Yeah, but what about that little car?
That dinky toy matchbox car might fit in my trunk if I remove the full size spare.
I thought that the U.K. is not in the E.U.?
With Webers? The side pipes are not functional though.
Very good question. A lot of men out of work in one area. For some insight on those MP's click here, they are all from Labour.
Wrong coleuer flags.
(Although I do see he has his hands up)...
Margret Thatcher warned during her last few months in office as PM, if the Pound is surrendered for the Euro, Britain's sovereignty would be lost to those which she fought against in two world wars.
looks pleasant, for a coffin.....
I am right in saying that that car was once a Peugeot 405?
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