August 29, 2018 / 8:56 AM / 8 months ago

Peugeot warns of further production halts over gearbox shortage

The Peugeot logo is pictured on the new Peugeot 508 before a news conference of PSA Group to announce the company's 2017 annual results at their headquarters in Rueil-Malmaison, near Paris, France, March 1, 2018. REUTERS/Benoit Tessier

PARIS (Reuters) - Production of PSA Group’s (PEUP.PA) Peugeot 308 compact car may suffer intermittent stoppages in coming weeks because of a shortage of gearboxes, the French carmaker said on Wednesday.

The production line assembling the 308 in Sochaux, eastern France, was disrupted for a second day before resuming work in the afternoon, company spokeswoman Karine Douet said.

A production bottleneck affecting the model’s new six-speed manual gearbox will gradually disappear as manufacturing of the gearbox ramps up at another PSA site in Valenciennes, northern France, Douet said.

“Given that this ramp-up will take a few weeks more, other temporary production stoppages or shift changes may occur in the factories,” she added.

PSA nonetheless expects “no impact on its sales volume for the second half”, Douet said.

Summer production slowdowns may also have affected the pace of gearbox production in Valenciennes.

As part of its response to the production hitches, PSA said it was drafting in workers from other French manufacturing sites.

Reporting by Laurence Frost; Editing by Geert De Clercq

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