Supplier strike forces PSA plant shutdown

Automotive News Europe

Paris - A strike at a one of its suppliers has forced PSA/Peugeot-Citroen to suspend production at its Sochaux factory in eastern France.

A work stoppage by 110 employees at Key Plastics' manufacturing site in Voujeaucourt, eastern France, has led to shortages of air vents and other plastic products, a PSA spokesman told Automotive News Europe.

The company's French employees went on strike March 3 in reaction to a restructuring plan approved in late-February by US-based management.

The shutdown, which continued Thursday, stops production of Peugeot's new 3008 crossover, which was unveiled at the Geneva auto show and is slated to go on sale across Europe in April.

The shutdown also stops production of the lower-medium Peugeot 308 and the new 308CC convertible, which is slated to launch across Europe this spring.

PSA did not disclose the level of lost production at the plant, its largest in France, but sources say it is more than 1000 cars a day.

Key Plastics supplies a range of parts to both PSA and its French rival Renault. PSA gets the parts directly and through contributions to modules manufactured by PSA-controlled supplier Faurecia.

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Staff report from Automotive News Europe (a Crain publication)