PSA Moving C3 Production to Slovakia?

PSA Peugeot Citroen will shift production of its Citroen C3 small sedan from Poissy, France, to Trnava, Slovakia, when the next-generation model launches, according to Reuters.

Unidentified sources tell the news service that PSA chose Trnava for the budget-priced C3 because of the plant's lower production costs. The factory also makes the Citroen C3 Picasso minivan and Peugeot 208 supermini.

PSA has emphasized repeatedly that France's relatively high labor costs have made it no longer viable to make inexpensive vehicles in the country. Reuters cites Eurostat data indicating hourly labor costs for an autoworker in Slovakia are less than one-third as high as in France.