More Cuts on Tap at Toyota-PSA Czech Plant

VIENNA – Toyota Peugeot Citroen Automobile Czech, the joint-venture car plant based in Kolin, Czech Republic, plans further job cuts amid slow sales.

The JV, which manufactures Toyota Aygo, Peugeot 107 and Citroen C1 minicars, is reacting to declining demand, primarily in southern Europe and the A-segment.

In early May, TPCA cut one-third of its 12 weekly 10.5-hourshifts. About 150 temporary workers and staff with fixed-contract terms were dismissed as part of that move.

Another 200 TPCA employees have moved to other operations, taking advantage of the alternative-work option in PSA’s PCA Slovakia car plant in neighboring Slovakia or at Czech suppliers.

However, flagging demand is forcing TPCA to take further steps. The auto maker now is soliciting voluntary departures from 250 workers, offering a payout above the legally prescribed scale and job-search support.

The plant employed about 3,000 workers at the time of the first round of cutbacks.

“We must respond to the market situation,” TPCA President Satoshi Tachihara says in a prepared statement. “Our key markets in western and southern Europe are experiencing difficult times and our production has to respond to the lower order levels expected for the second half of this year and for the next year.”

In February, TPCA expected to produce about 221,000 cars this year, down 18.3% from 2011. The company is not citing any figures at this time.

TPCA achieved its highest output in 2009 with 332,489 cars built. The JV produced 270,705 units last year, its lowest volume so far.

The factory launched production in 2005. Since that time, its three minicars have been facelifted twice, in 2008 and 2012.

But there has been no completely new model yet, and the cars are up against newer entries in the market from competitors, such as Volkswagen Group’s VW Up!, Skoda Citigo and SEAT Mii trio.