United Kingdom
West Midlands; West Midlands; Coventry
Location of affected unit(s)
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.1 - Manufacture of motor vehicles

2,300 jobs
Number of planned job losses
Job loss
Announcement Date
18 April 2006
Employment effect (start)
Foreseen end date
30 June 2007


Peugeot is to close its car plant at Ryton near Coventry with the loss of 2,300 jobs. The plant, which assembles the Peugeot 206, is to cease production in the middle of next year. Jean Martin Folz, chief executive of Peugeot Citroen, said on Tuesday that a study had showed that Ryton had high production and logistical costs. This meant the group was unable to justify the investment needed for the production of future vehicles. The Ryton plant currently operates on a two-shift system. Initially the company announced that production would be stopped in two phases by moving to a single shift in July 2006, and then halting production completely in mid-2007. They updated this position on 11 October 2006 and announced that in fact the plant would close up to 6 months earlier. Union officials said the news was disastrous for British manufacturing. Derek Simpson, general secretary of Amicus, said: 'It is inconceivable that workers in France would be laid off on this scale. Weak UK labour laws are allowing British workers to be sacrificed at the expense of a flexible labour market.'


  • 11 October 2006: The Guardian
  • 18 April 2006: BBC Website


Eurofound (2006), Peugeot, Closure in United Kingdom, factsheet number 63365, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63365.