Peugeot-Citroen is to end production and close its UK production plant at Ryton near Coventry with a loss of 2,300 jobs.
Peugeot-Citroen’s chief executive, Jean Martin Folz, flew from France to break the news to union officials this morning.
He blamed high production costs for the decision to scale back output this year and close the 100-acre site in 2007.
The news follows on from other major car manufacturers either closing down plants in the region or facing financial ruin.
In July 2005, Jaguar closed its historic Coventry HQ plant at Browns Lane, while in Birmingham MG Rover collapsed in a blaze of publicity also last year.
Rumours had been circulating that rising losses might see the Peugeot-Citroen Ryton plant close in four or five years’ time, but today’s announcement had not been predicted.
Peugeot’s decision will present a significant development opportunity for the region, as Ryton is one of the area’s major employment sites.
Last February, Jaguar and St Modwen unveiled a joint venture partnership to develop a science and business park on 70 acres owned by Jaguar at the nearby Whitley site and last month, modular construction specialist Delamar announced that it would invest £200m in a production plant at Browns Lane.
Commenting on today’s announcement, Robert Rae, of Coventry-based industrial specialist North Rae Sanders, said: “The news is a disaster for the city’s automotive and manufacturing sectors, but the area is desperately short of land suitable for development.”
References: EGi News 18/04/06
