PARIS - PSA/Peugeot-Citroen will close its Rennes plant for five days this month due to a slowdown in sales of upper-medium cars.
PSA says a sluggish economy in its main European markets and rising fuel prices are accelerating the decline of upper-medium sales.
"The European market for upper-medium sedans is one of the weakest at present," PSA spokesman Hugues Dufour said.
The segment for upper-medium cars in Europe now represents 17.2 percent of new-car sales, compared with 17.4 percent in 2004 and 19.2 percent in 2001, PSA says.
The Citroen C5 and Peugeot 407 are built in Rennes.
Two new models, the Citroen C6 and Peugeot 407 coupe, will be added by year-end.
The Rennes plant has capacity to make 350,000 to 400,000 vehicles a year, or about 1,800 cars a day, PSA says. At present, it produces 1,500 cars a day.
PSA will stop production at the plant today (October 3), tomorrow and on October 24, 28 and 31.