Peugeot to axe 850 jobs in Coventry

Unions are seeking urgent talks with executives at car giant Peugeot following the firm's announcement it is to axe 850 jobs at its main UK factory under plans to end a production shift.

Unions are seeking urgent talks with executives at car giant Peugeot following the firm's announcement it is to axe 850 jobs at its main UK factory under plans to end a production shift.

Peugeot said it would do everything it could to minimise the impact of the cuts at its Ryton, Coventry site which employs around 2,800 workers.

A shift which runs from Friday to Sunday is to be axed in the summer as the French-owned company moves to adjust its output to market demand.

Ryton produces the Peugeot 206, and last year built around 180,000 vehicles, 60% for export.

A spokeswoman for the Transport and General Workers' Union said many of the jobs would be shed through voluntary redundancies and contracts not being renewed.

"While the job losses are bad enough, the major concerning issue is Peugeot's failure to highlight a new model for the 206," she said.

"We are, therefore, looking to talk as a matter of urgency to the chairman of the company and the Secretary of State Patricia Hewitt to resolve this and secure a long term future for the plant."

Dave Osborne, national officer of the TGWU, said: "It is a double blow following a cutback last year from four to three shifts.

"We will oppose any attempt to make compulsory redundancies, and we will be seeking an urgent meeting with senior Peugeot executives in the light of the renewed concerns for future models at Ryton, which the announcement must surely raise."

Peugeot said in a statement: "Despite the Peugeot 206 continuing to be one of the best-selling retail cars in Europe, the small car segment has seen a considerable broadening of the product offering. This has impacted on the sales volumes of the Peugeot 206.

"As a result, Peugeot has to review its manufacturing strategy for the car and adjust its output in line with market demand."

The company said that since the start of the year a number of measures have been taken at Ryton to match production to demand more accurately. But it added that these were no longer enough, and so the firm had decided to end the so-called C shift.

The factory, which has been building Peugeots since the mid-1980s, will return to a two shift operation that was worked at the site from 1988 in 1999.

Peugeot said similar returns to a two shift system had also taken place at other European factories within the Peugeot Citroen Group.

The statement went on: "Ryton will continue to be one of the three production sites for the Peugeot 206 in Europe, and will play a key role in the company's manufacturing strategy as it will become the main European production site for the car for several years to come."

Peugeot said it will open talks with employee representatives and intended to offer voluntary redundancy and early retirement as well as exploring redeployment opportunities to other sites.

The company said it will work with local employment services and business contacts to organise jobs fairs at the site and will offer help and advice to workers effected by yesterday's announcement.

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Day In a Page

Fifa corruption: The 161-page dossier that exposes the organisation's dark heart

The 161-page dossier that exposes Fifa's dark heart

How did a group of corrupt officials turn football’s governing body into what was, in essence, a criminal enterprise? Chris Green and David Connett reveal all
Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

Exclusive interview with Tripoli PM Khalifa al-Ghweil

'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

Raymond Chandler's Los Angeles

How the author foretold the Californian water crisis
Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

Art attack

Chinese artist who posted funny image of President Xi Jinping facing five years in prison
Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

Cher is the new face of Marc Jacobs

Alexander Fury explains why designers are turning to august stars to front their lines
Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

'I'm climbing Ben Nevis for my daughter'

Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
10 best wedding gift ideas

It's that time of year again... 10 best wedding gift ideas

Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
Paul Scholes column: With the Premier League over for another year, here are my end of season awards

Paul Scholes column

With the Premier League over for another year, here are my end of season awards
Heysel disaster 30th anniversary: Liverpool have seen too much tragedy to forget fateful day in Belgium

Liverpool have seen too much tragedy to forget Heysel

Thirty years ago, 39 fans waiting to watch a European Cup final died as a result of a fatal cocktail of circumstances. Ian Herbert looks at how a club dealt with this tragedy
Amir Khan vs Chris Algieri: Khan’s audition for Floyd Mayweather may turn into a no-win situation, says Frank Warren

Khan’s audition for Mayweather may turn into a no-win situation

The Bolton fighter could be damned if he dazzles and damned if he doesn’t against Algieri, the man last seen being decked six times by Pacquiao, says Frank Warren
Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

How Stephen Mangan got his range

Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor