Peugeot 208 and Renault Clio undergo high production cost

Turin, - French car manufacturer should bear the burden of confusion due to higher production in the country, especially a compact car. Compared to Turkey for the same product, more expensive fare to 1,300 euros per unit.

Peugeot 208 and Renault Clio undergo high production cost

This explanation is presented by Carlos Tavares, Chief Operating Officer of Renault in front of the French Senate commission, which was launched Autonews (02/15/2012). On a separate explanation, on the same day, Denis Martin, Executive Vice President of Industry PSA Peugeot explain to French officials that the cost of production in their country is not competitive. Both executives pleaded, trying to grapple with the economic recession in Europe and just rely on the sales of small cars, the Peugeot 208 and Renault Clio.

Carlos Tavares continues, with the difference in production costs caused the company is difficult to make profits. Especially when the other brands do the act of "war" by offering price discounts to maintain sales volume. Depends only on the Dacia company, which still provide benefits.

Meanwhile, Denis Martin said the sale would not benefit the Peugeot 208 in Western Europe, one of them French. The range of prices offered another brand, manufactured in the country more competitive, difficult to match.

Renault and Peugeot are not able to improve plant efficiency due to government interference in the operations. In 2009, the government disbursed a loan of 6 million euros for both companies but must provide a guarantee no layoffs and keep the factory operational run.