Peugeot Citroen idles Slovak factory over falling orders

PSA – Peugeot Citroen – is to suspend production at its Slovak factory in Trnava, Western Slovakia, because of falling orders.

The news that Peugeot Citroen (PSA) is to suspend production at its factory in Trnava, Western Slovakia, as orders for cars fall away, is another sign of the impending gloom in the Euro zone car industry.

PSA has revealed that the Trnava factory – which produces the Peugeot 207 and Citroen C3 Picasso – will be shut from October 28th to November 18th (a period which does include two bank holidays) as orders start to fall away and production exceeds demand.

But this announcement seems to be the tip of the iceberg for PSA’s factory closures. It seems there are plans to close the factory PSA has in Madrid and two other plants in France as the company struggles to deal with the changing climate in Europe and beyond.

It’s clear that PSA has over-capacity in Europe, and it will need to take drastic action if it’s to remain profitable and to compete on a global basis with other large car makers.

Although there is no indication that Peugeot Citroen are currently planning to permanently close the factory in Trnava, the loss of 13.3 per cent year on year sales does mean it’s a possibility. And even if Trnava isn’t shuttered up, it seems likely PSA will be seeking other factory closures in the future.

In fact, it is highly probable that European car making industry is on the brink of a wholesale restructuring.

Read that as closures.