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.

To view related research reports, please follow
the links below
:-

The
automotive industry in Latin America: Mexico, Brazil and Argentina
Forecasts to 2005 (download)

The
world’s car manufacturers: A financial and operating review (download)