PSA to increase European output to meet increasing demand in its range of cars.

PSA Peugeot Citroën has announced that it will be increasing output in its European plants in order to capitalise on growth in Europe's markets and meet demand from its customers. 

More than 60,000 additional vehicles will be produced in Europe by the end of August 2015, meaning that volumes will be 10% higher than initially planned for the period.

Volumes will increase for all three of the Group's brands – Peugeot, Citroën and DS. For example, the number of Citroën C4 Cactus cars manufactured in Madrid – a model which exceeds its targets with orders totaling nearly 30,000 since January – will be increased by 9,000 units over the period. 

The Peugeot line-up will also be ramped up, with additional volumes planned in particular for the 208, 2008 and 308, including the 308 SW version.

The number of DS 3 units manufactured in Poissy, France will also increase, as will volumes across the Group's range of utility vehicles, in a segment that PSA Peugeot Citroën continues to lead.

As part of the plan to increase production, operations will be stepped up at the Group's engine and gearbox plants in France, as well as at its foundries and in its sales networks. Suppliers and the entire automotive industry will also be called on to participate in the uptrend.

For the PSA Peugeot Citroën European plants concerned, the increase in production will lead to work schedule adjustments and, in certain cases, to the short-term deployment of additional teams and the hiring of temporary workers.

PSA Peugeot Citroën's manufacturing base is able to respond to rapid changes in demand thanks to the flexibility provided for in agreements signed with employee representatives in France (New Social Contract of 2013) and in other European countries. These agreements make it possible to reconcile plant competitiveness imperatives and preserve employees' main interests.

Denis Martin, Executive Vice President, Operational Director Europe, said: "Growth in the European market is very good news for the entire automotive industry, from plants to dealership networks to suppliers. It's having a real turbo effect on PSA's performance. 

The positive development we're seeing in the market today means we can step up execution of the Back in the Race plan, which was based on the assumption that the market would remain flat. 

With the support of our suppliers, and thanks to the flexibility provided for in the agreements signed with employee representatives, we are mobilising all our resources to meet demand from our customers."