RENNES, France -- PSA/Peugeot-Citroen is cutting output of the Peugeot 208 subcompact because of slowing demand in Europe's weak auto market.
Peugeot is reducing production and its sales outlook for the 208, a company spokesperson told Automotive News Europe on Monday without giving further details.
The spokesperson could not confirm media reports that Peugeot plans to sell 140,000 units of the 208 this year instead of the 175,000 it had planned.
On Friday, the Wall Street Journal reported that Peugeot will reduce the hourly production rate of the 208 at its factory in Poissy, west of Paris, to 35 from 52, starting on Oct. 10 and cancel one of the Poissy plant's three shifts in early December.
A representative from the CGT union told Automotive News Europe that Peugeot will cut its night shift for the production of the 208 at Poissy at the end of November.
Peugeot also plans to eliminate 850 temporary worker positions at the site by the end of the year, the union representative said.
The Peugeot spokesperson said the brand still expects to have a share of 10 percent in the subcompact segment in Europe by the end of next year, but said overall industry volumes in the sector should be lower compared with forecasts from earlier this year.
Earlier this year, Peugeot forecast that it would sell 550,000 units of the 208 worldwide and 420,000 units in Europe in 2013.
Deutsche Bank analyst Gaetan Toulemonde said 208 sales have been hit by the economic downturn.