PARIS May 22 PSA Peugeot Citroen
plans to build its next C3 compact model in Slovakia instead of
France, sources close to the French carmaker told Reuters on
The move is part of a strategy to switch production of
mass-market small cars away from Western Europe where costs are
considered too high and instead build higher-end models in the
"They're starting technical operations on the new Citroen
model in the coming weeks... it's going to be in Eastern Europe,
in Trnava," one source close to the matter told Reuters.
Two other sources close to the car group confirmed that a
decision had been made to produce the future C3 in Slovakia,
where the company already builds the C3 Picasso multi-purpose
vehicle and the Peugeot 208.
A PSA spokesman declined to confirm the production move,
adding that the carmaker never unveiled such plans in advance.
He said PSA had pledged to preserve its French factories as part
of a labour deal signed last year.
PSA Chief Executive Carlos Tavares and his predecessor
Philippe Varin have repeatedly said it was no longer viable to
produce mass-market small cars in France because tough
competition meant prices on such models were too low to cover
the production costs.
Tavares is expected to face questions from unions on Friday
during a factory visit in Poissy, near Paris, where the C3 is
currently produced for the European market along with the
premium DS3 model.
(Writing by James Regan; Editing by Leila Abboud)