PSA Cuts-Down production in France, Spain after parts shortage stream

0 comments, 24/03/2011, by , in Auto News

PARIS – PSA Peugeot Citroen has initiated production cut-down process at some of its European plants, following the disrupted supply of some diesel engine components, from one of its main supplier Hitachi, which was badly affected by the Japan devastating earthquake and tsunami.

As indicated by a Peugeot-Citroen Spokesman on Wednesday, a significant reduction of 40-50% has been observed in terms of production capacity percentage at some of PSA’s main production factories like, Vigo (Spain), Trmava (Slokavia), Poissy and Aulnay (France), while another PSA’s production plant Rannes (France) is still unaffected and Mulhouse plant is also running at 75% of capacity.

“The group has chosen to favor the vehicles that are in the process of being launched in order not to weaken them, since traditionally the stocks (for these cars) are weaker,” said a company spokesman, signifying that decision will not affect the production of Peugeot 508 and Citroen DS4 being assembled at Rennes and Mulhouse respectively.

PSA expecting Hitachi to resume its production supply very soon, as it is one of those companies who faced severe production supply disruptions after the devastating earthquake struck the Northern Japan.

The company said that, instead of disrupted supplies stream from Japan, hopefully it will not experience any production delays at China and Latin American plants due to supply shortages.

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