PSA Peugeot Citroën has announced that it is considering stepping up production of the 206 hatchback and new 206 SW at Ryton, near Coventry.

To satisfy current demand, production will need to increase to 230,000 vehicles next year - up 40,000 on 2001 - requiring the introduction of a fourth shift at the plant and recruitment of an additional 700 employees.

This would strengthen PSA Peugeot Citroën's position as one of the largest volume car producers in the UK - second only to Nissan in Sunderland. Last year 51% of total production was exported.

Ryton currently works on a three-shift basis, throughout the week. Discussions with trade unions representing both manual and staff employees regarding these plans were announced today, and it is hoped that increased production could begin from January 2003. Ryton is the only plant in the PSA Peugeot Citroën group to produce the 206 SW five-door model to be launched across Europe shortly.