Peugeot to close British car factory

April 19, 2006 at 11:22 AM

COVENTRY, England, April 19 (UPI) -- British labor unions are denouncing plans by France's Peugeot carmaker to close a factory in the West Midlands.

About 2,300 people are expected to lose their jobs at the Ryton facility near Coventry, the BBC said. Workers were being told Wednesday about the closure plan's details.

Peugeot says it costs $500 more per vehicle, on average, to make a car in Britain than elsewhere in Europe.

But British labor unions say the real reason for Peugeot's retreat is that it is less expensive to close a British factory than a French factory.

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