PSA Ponders New Production Cuts in France

PSA Peugeot Citroen confirms to Bloomberg News that the company could eliminate one of two production lines at its factory in Mulhouse, France.

A possible capacity reduction was first reported on Thursday by La Figaro.

Mulhouse, which has capacity to make 452,000 cars per year, produced 224,000 vehicles last year. PSA notes that an agreement made last month with four its unions allows the company to open discussions about a cutback if output falls below 250,000 units.

PSA's goal is to achieve 100% capacity utilization for all its French factories by 2016. The company is closing its assembly plant in Aulnay and expects to eliminate more than 11,000 jobs in France by 2015.