Peugeot Citroën has announced massive production cuts for the last quarter of 2008.

PSA Peugeot Citroën has announced that it is to dramatically slash its production in the final quarter of the year, following a third quarter (Q3) decline in sales and markets.

Q3 sales and revenues were down over 5% and automotive sales fell by over 7% compared with the same period last year. Sales in Western Europe and China suffered the most – down almost 13% and 22% respectively – and the Group anticipates Western European sales to fall by a further 17% in the final quarter.

Christian Streiff, President of PSA Peugeot Citroën, said: “The solidity and breadth of the Group’s financial resources are major assets in the current financial crisis. We are therefore concentrating on cash management as a key priority.

“We have reacted very swiftly to this market collapse with exceptional measures to cut production, even though this is obviously detrimental to our 2008 operating margin. Massive production cuts will be made in the fourth quarter as it is vital that we are correctly positioned to face 2009.”

Sales of the Peugeot 207 have held up well, however, and the combined Peugeot 307/308 has also done well, increasing over 10% during the first nine months of the year.

PSA Peugeot Citroën is one of the world’s leading car makers, and is the second largest car manufacturer in Europe. It operates in more than 150 locations, employs over 207,000 people and in 2007, it sold over 3.5 million cars.