By Leos Rousek
French automaker PSA Peugeot Citroen SA (UG.FR) halted
production at its Slovak plant Monday and plans to freeze its
output for an additional four days in February due to poor demand
for passenger cars across Europe, PSA Peugeot Citroen Slovakia said
in a statement.
European auto sales have dropped to their lowest levels in
decades due to over-capacity and the economic downturn. Peugeot,
one of the hardest-hit automakers in Europe, is laying off
thousands of workers in France where it's also closing one its
plants.
Peugeot's Slovak plant makes small-sized and low-priced Peugeot
208 and Citroen C3 models. The company is key for the Slovak
economy which is heavily focused on automobile and car parts
exports.
"Demand for new cars in Europe has been declining steadily,"
said PSA Peugeot Citroen Slovakia. "Declining trends in sales have
naturally translated in production reductions at several car
markers."
The statement added that the company expects to keep the overall
output at its Slovak unit flat on the year at 215,000 units in
2013.
Slovakia is also home to assembly plants of Germany's Volkswagen
AG (VOW.XE) and South Korea's Kia Motors Corp. (000270.SE). The
three automakers produce nearly 1 million cars a year at its Slovak
plants, making this Central European country of 5 million people
one of the world's biggest car-makers per capita.
Write to Leos Rousek at leos.rousek@dowjones.com
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