PSA/Peugeot-Citroen SA has reassured workers that its factory in Aulnay, near Paris, has a future.
The French carmaker was responding to press reports that the factory may be closed to improve the automaker's competitiveness.
The reports cited an internal document that said production of the C3 subcompact would be transferred from Aulnay to another plant near Paris.
"PSA/Peugeot-Citroen firmly states that the closure of the Aulnay site is not currently on the Group's agenda," the company said in a statement on Thursday.
It said the document was a preliminary working document drafted nearly a year ago that set out some of the company's options for improving its competitiveness in Europe.
"This document does not in any way constitute a decision taken by the managing board. In the context of the crisis in the automotive industry, as was the case in the summer 2010, the managing board considers that analyzing these kinds of issues is part of its responsibility," the statement said.