Toyota and PSA Peugeot-Citroen plan to cut production at TPCA, their joint venture factory in Nosovice, by about 20% to about 221,000 units this year because of softening demand in Europe.

The factory builds the Toyota Aygo, Citroen C1 and Peugeot 107. Refreshed version of the three city cars were shown at last month’s Brussels motor show; redesigned versions are said to be in the pipeline for launch in 2013.

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TPCA said that it will reduce its working week to four from six days and daily shifts to two from three from May.

“We have to react swiftly and adjust our output to match the demand for small cars on European markets,” TPCA president Satoshi Tachihara said in a statement.

TPCA has a 300,000 annual capacity – a figure reached in both 2009 and 2010.

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