PSA halts production at Slovak plant on weaker sales
PSA Peugeot Citroen continues to struggle with Europe\'s debt crisis.
France's PSA Peugeot Citroen was forced to temporarily close one of its main production facilities in Slovakia on Monday due to Europe's sagging auto market.
PSA Peugeot Citroen was forced to shutter its plant in Trnava, Slovakia today as the automaker's inventories continue to swell. The Trnava plant makes the Peugeot 207 and Citroen C3 Picasso.
In addition to the Monday shutdown, the French automaker also announced that the plant would be closed for four more days in February as a result of slowing sales.
"Demand for new cars in Europe is continuously falling. Decreasing trends in sales transform into production cuts by several carmakers," PSA Peugeot Citroen Slovakia told Reuters.
Despite the planned closures, PSA expects the Trnava plant to produce more than 215,000 vehicles this year, which would surpass the factory's 2012 output. The plant has an annual capacity of 300,000 vehicles.
Late last year PSA Peugeot Citroen announced it would be cutting more than 10,000 jobs and permanently closing a plant just outside of Paris.