Blog: PSA's Ryton plant
Dave Leggett | 25 February 2005
I've just posted something in the discussion forum regarding PSA's Ryton (UK) plant. Click below if you want to read and perhaps join in. Not getting the 207 and only having 206 confirmed for continued future production is not quite the end of the world for Ryton. PSA officials are stressing that Folz simply wanted to make the position clear this week regarding what can be confirmed and what is not confirmed. Sole source European production for 206 is confirmed. No other product for Ryton can be confirmed at this stage, but that does not mean nothing will be added later.
The UK is an important market for both PSA brands, suggesting that there will continue to be a strong case for manufacturing here (maybe Citroen models could be made at Ryton). Indeed, while the UK is outside of the euro area a plant in Britain actually reduces exposure on currency movements!
I can't help thinking though that it suits PSA to keep the Ryton uncertainty going for a little longer. The managers and unions at Ryton are bound to be pretty focused on keeping costs down. A couple of years ago there was industrial unrest at Ryton over pay and Folz did not mince his words back then about the plant's uncertain future when 206 came to be replaced or the problems associated with being outside the eurozone. The unions have been quiet since. Shrewd operator.
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