In March 2005, the French car manufacturer Peugeot Citroën announced 850 job losses at its Ryton plant near Coventry. The move has fuelled speculation over the long-term future of the plant.
On 20 March 2005, PSA Peugeot Citroën announced plans to cut 850 jobs at its Ryton plant near Coventry - almost one-third of the 2,800 workforce. The French car manufacturer is to scrap one of its three production shifts at the plant in response to declining sales of the Peugeot 206 which is made at the plant. The announcement follows hard on the heels of Ford’s decision to cease vehicle production at the Browns Lane Jaguar plant in Coventry (UK0412106F).
Peugeot has now begun the required consultations with recognised trade unions at the plant 90 days ahead of the planned redundancies. The company is expected to offer voluntary terms and early retirement as well as the opportunity for redeployment to other sites.
The job cuts have fuelled speculation over the company’s long-term commitment to the Ryton site. Production of the 206 model is due to cease in 2010 and company executives have so far given no indications concerning the future of the plant beyond that date. Local MPs are reported to have been talking to the company and the Department of Trade and Industry over Peugeot’s future at Ryton.
Dave Osborne, the Transport and General Workers’ Union’s national secretary for the automotive sector, said that the news of the redundancies was 'extremely disappointing and a double blow following last year’s reduction to three shifts. The [union] will oppose any compulsory redundancies', he continued. 'We’ll be seeking a urgent meeting with senior Peugeot managers in the light of the renewed concerns for future models at Ryton that today’s announcement will surely bring.'
Roger Maddison from the Amicus trade union commented: 'This is more devastating news for Coventry, where nearly 1,400 car manufacturing jobs have been lost in the past year. We have asked for an urgent meeting to discuss terms but we will not accept anything less than the very best packages for our members and no compulsory redundancies.'
The Ryton plant operated on a two-shift basis from 1988 to 1999.In 2002, the company ended the long-standing industry tradition of a three-week summer shutdown and recruited temporary staff in order to maintain continuous production throughout the summer (UK0204102N). More recently, however, increasing competition in the small car market and a general downturn in the demand for small cars has had an adverse impact on the sales of the Peugeot 206 model. 'As a result', says the company, 'Peugeot has had to review its manufacturing strategy for the car and adjust its output in line with market demand'. Last year, 180,000 vehicles were built at Ryton, 60% for export. Peugeot said that other European factories within the group were also moving to two-shift production.
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