By Max Bernhard 
 

Peugeot SA (UG.FR) plans to cut up to 400 jobs at its Vauxhall production plant in Ellesmere Port in the U.K. as it reduces production volumes, the company said in a statement Monday.

The company will conduct the cuts through a voluntary separation program to be completed by the end of 2017, it said, moving towards a single-shift operation at the site next year. The Ellesmere Port facility, which produces the Astra model, employs close to 2,000 people.

"Vauxhall needs to adjust production volumes at its Ellesmere Port production facility to the current level of demand, to improve its performance and protect its future as the industry faces challenging European market conditions and a declining passenger car market," a Peugeot spokesman said.

Peugeot acquired the Vauxhall and Opel brands from General Motors Co (GM) this summer, with the goal to return the brands to profitability.

Peugeot said it will consider future investments once it has "enough visibility on the future trading relationship with the European Union, and the plant competitiveness has been addressed."

Write to Max Bernhard at max.bernhard@dowjones.com

(END) Dow Jones Newswires

October 16, 2017 07:01 ET (11:01 GMT)