The PSA Group only started to make vehicles in Brazil this year but is already reducing production, writes Rogério Louro Alves.

Due to a decrease in Brazilian cars sales in recent months, PSA will cut production and fire 89 workers at its Porto Real plant, in Rio de Janeiro state.

The company currently produce 240 vehicles per day but will cut output to 150.

The move comes despite a 50.6 percent growth in the PSA Group’s Peugeot and Citroën sales for the first nine months of 2001. During the same period, total Brazilian vehicle sales increased by 13 percent.

A PSA spokeman said that the production reduction will adjust plant output to suit decreased demand for new cars in Brazil.

The Porto Real plant was opened in February and builds the Citroën Picasso minivan and the Peugeot 206 compact hatchback with one-litre engine. The new Citroen C3 hatchback will be built from the end of next year.

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