Production of the all-new Peugeot 208 is being cut by PSA Peugeot Citroen in response to slowing demand for the city car across European markets only six months after its April launch.
- shares

Industry journal Automotive News Europe reports that a company spokesperson confirmed the French car maker is reducing production of the Peugeot 208 along with its sales outlook as a reaction to the continuing slump in sales across Europe.

Peugeot 208 - 1

While reports exist of plans for Peugeot to drop its sales targets from 175,000 units to 140,000 and reduce its hourly production rate from 52 vehicles to 35 at its Poissy factory starting from October 10 ahead of entirely cancelling one of the plant's three shifts in early December remain unconfirmed, a representative from France’s General Confederation of Labour (CGT) union told Automotive News Europe that Peugeot will cease its 208 production night shift at Poissy at the end of November.

Peugeot had previously forecast global 208 sales of 550,000 units and a European figure of 420,000 units for 2013.

Peugeot 208 GTi - 1

In July this year PSA announced a plan to cut 8000 jobs and close its Aulnay plant near Paris in a previous attempt to deal with financial difficulties.

The Peugeot 208 went on sale in Australia last month, starting from $18,490, with the new Peugeot 208 GTi (pictured above) due to arrive next year.