Peugeot expands as Ford makes further cutbacks

French car manufacturer Peugeot claimed this week that it is to create up to 3,000 new jobs in the Midlands. The move follows its decision to boost production at its Ryton, Coventry plant next year to meet rising demand. In marked contrast, Ford announced further job cuts at its Dagenham, Essex plant due to falling […]

French car manufacturer Peugeot claimed this week that it is to create up to 3,000 new jobs in the Midlands. The move follows its decision to boost production at its Ryton, Coventry plant next year to meet rising demand.

In marked contrast, Ford announced further job cuts at its Dagenham, Essex plant due to falling demand overseas. The plant, which has been on short-time production since the beginning of October, is to stay on a four-day week until the end of January.

Peugeot’s expansion plans are based on rising sales of its new 206 model. The Ryton plant, which manufactures the model, is to take on an extra 900 workers as it prepares to add a third shift in May next year. Weekly production at the plant will increase from 2,500 to over 3,400 a week.

The company believes the additional production will also create 2,000 jobs with Midlands suppliers.

Peugeot managing director Richard Parham said the decision to increase production at Ryton was due to the annualised hours agreement with the workforce. The deal, brokered over two years ago, ‘has given us significant additional flexibility’, said Parham.

News analysis, p14