Toyota-PSA Czech Plant to Cut Production

VIENNA – Toyota Peugeot Citroen Automobile Czech, the joint venture between Toyota and PSA Peugeot Citroen, will reduce production beginning May due to slowing demand.

The TPCA plant in Kolin, Czech Republic, is a 3-crew operation, running 12 shifts a week. There are two 10.5-hour shifts daily Monday-Friday, plus one morning shift on Saturday and a night shift on Sunday. Some 970 cars are produced a day.

Starting in May, TPCA will cut four shifts per week and reorganize into two teams.

The auto maker, which currently employs almost 3,000 people, will cut about 150 workers employed by outside agencies and workers with time-limited contracts.

“We need to respond flexibly and adapt production to demand of small cars in European markets,” TPCA President Satoshi Tachihara says in a prepared statement. “At this moment, we (are doing) what we can do to minimize (the) impact to our permanent employees.”

The JV, which launched output in February 2005, manufactures the Toyota Aygo, Peugeot 107 and Citroen C1 small cars. TPCA began building facelifted versions of all three vehicles Feb. 7.

The plant produced270,705 cars last year, down 8.5% from 2010. The total includes 90,687 Toyota Aygo, 91,335 Peugeot 107 and 88,683 Citroen C1 models.

Nearly all of the cars built by TPCA are exported, with France, Italy, Germany, the U.K. and the Netherlands main markets.

Last year’s production was TPCA’s lowest volume so far in a complete year. The company achieved its highest output, 332,489 cars, in 2009. At that time TPCA employed some 3,600 people.

The auto maker expects to build about 221,000 vehicles this year, down 18.3% from 2011.