Peugeot 206 production will continue - 21/03/2005
The Peugeot 206 will still be manufactured at the Ryton plant near Coventry, despite the loss of 850 jobs.
Peugeot communications director John Goodman said that a "completely sustainable of production" would be established at the plant from now on.
Speaking on BBC Radio 4's Today programme, Mr Goodman regretted the decision, but argued that it was economically inevitable.
"We're faced with a European market that is down considerably on last year. February for example was the worst European market for ten years and in the face of that we had to adjust our production and unfortunately that has meant the closure of the third shift," he said.
He was keen to stress the car's continuing popularity, pointing out that its sales accounted for 12 per cent of the European small car market and it remains the best-selling retail car in the UK.
He concluded that, as production continues at economically viable levels, Peugeot's priority is "to ensure that this passes as painlessly as possible and that we work with the unions and with all the local authorities that the impact of these 850 jobs is reduced to a minimum".
New Peugeot 206 Deals
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