French car factory ends production

October 30, 2013
French car factory ends production
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The last ever Citroen C3 rolled out of the Peugeot-Citroen's assembly facility near Paris last week. It is a sad end to a plant that once employed 3,300 workers, yet experts believe it is a scenario that must be repeated another eighteen times for Europe to end it vehicle production over capacity problem.


Aulnay had produced 8,568,391 cars in its 40 year history but was also beset with industrial relations problems, while the facility lacked the automated efficiency of other plants.

Industry observers believe Aulnay will be one of many more plants to end production in the next few years as European car makers reduce manufacturing capacity in a bid to protect profits. At present plants in Europe have the capacity to make around 26 million cars a year, but current production and demand levels are running at only 18 million. This means that in simple terms 18 plants would need to close to get anywhere near market equilibrium.

However, plans by Ford, GM and Fiat to close manufacturing sites have run into intense opposition with unions putting pressure on local politicians to slow or halt closures.
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