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FRANCE: PSA mulls Mulhouse as production dips below 250,000

By Simon Warburton | 22 November 2013

PSA Peugeot Citroen says it is "tackling" the question of falling production noting its Mulhouse site in eastern France, had now fallen under the 250,000 unit level.

French media speculation has hinted PSA may be mulling the future of an assembly line at Mulhouse, as production at the site is already below 250,000 units per year.

"It is true when we were discussing the new social contract with the unions, we tackled the subject of optimising production flows, improving [the] utility rate and competitiveness of the sites with an objective of 100% utilisation," a PSA spokeswoman told just-auto from Paris.

"We took a strong engagement to produce 1m vehicles by 2016 [and] to close no plants, to invest EUR1.6bn (US$2.2bn) during this period.

"But what we say also is when a plant produces less than 250,000 vehicles a year, there is a question about optimising production. There is a question that must be tackled. We will continue talking with the unions in all transparency.

"I guess there will be regular meetings" [with the unions].

PSA is already well advanced with plans to close its Aulnay site near Paris with the last C3 recently being produced at the factory, earmarked for shuttering next year.

The closure will result in the loss of 3,000 jobs, although a significant number of these may be found employment either within the company or elsewhere.

PSA added Mulhouse produced 224,000 units last year.