Toyota Peugeot Citroën Automobile. a joint-venture between the Japanese and French car manufacturers, announces a voluntary redundancy program in its plant located in Kolin, Czech Republic.The competitive European environment in the automotive industry remained very difficult during the first part of this year, similar to the last quarter of 2011 and markets in Southern Europe worsened considerably, especially in the A segment. This environment is likely to continue throughout the second part of the year 2012.

In this context, TPCA needs to adjust its production to match reduced demand. Several measures have already been taken such as a shift change in May and the termination of time-limited contracts for about 150 employees. Another 200 employees moved on a voluntary basis to the PSA plant in Trnava, in Slovakia or to suppliers.

In addition to these measures, TPCA is also now opening a voluntary redundancy program: about 250 employees will be proposed to accept this offer, which includes a favorable redundancy package. TPCA also prepares outplacement activities dedicated to these employees.

„Our company has to react on the market situation,“ said Satoshi Tachihara, TPCA president and add: „Our key markets in West and South Europe are in a tough situation and we have to adjust our production according to lower market demand in the second half of this year as well as next year. We made great efforts to arrange alternative activities for our members but we have to take further measure. This is the reason why we propose to our employees this voluntary redundancy program. We really appreciate good work of our employees and it is reason why we have chosen a voluntary based program with more favorable conditions than what the Czech law stipulates. We have made consensus about this issue with unions and we believe that employees understand our reaction in order to keep our competitiveness.“


Radek Kňava

TPCA Press Office

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Toyota Peugeot Citroën Automobile (TPCA) is a joint venture between Toyota Motor Corporation and PSA Peugeot Citroën incorporated in 2002 and located in the city of Kolin. Operations started in February 2005 and a year later the annual capacity of 300,000 cars was reached. Nearly 3,000 employees work nowadays in TPCA. TPCA belongs to the greatest exporters from the Czech Republic. The Kolín car factory makes the Toyota Aygo, Peugeot 107 and Citroën C1 models, the city cars characterized by reliability and low fuel consumption. TPCA applies the most environment friendly available technologies as confirmed by the BAT (Best Available Techniques) certification awarded to the site together with the international Environmental Management Certificate EN ISO 14001:2004. TPCA has already dedicated over 85 million Czech crowns to development of the Kolín region.