Sources close to French car maker Peugeot warned yesterday that the continued strength of the pound was threatening jobs at its plants in the West Midlands.
The Observer newspaper quoted a senior figure as saying that jobs were at risk at its plants in the Coventry area because the high value of sterling was making UK investment decisions "hard to predict".
Urging the government to state once and for all whether it would or would not join the single European currency, the source said: "Two-thirds of our production is for export. It's a big concern not just now but for the future, because the high level of the pound against the euro makes future investment difficult."
In January Peugeot, the majority of whose 4,000 British workers are employed in Coventry, announced plans to produce a new Citroën there to build on the success of its 206 model. The plant now produces the 206 model at the rate of 160,000 a year.
The Peugeot source insisted that though the plan was not on hold, components would probably be sourced from abroad rather than in Britain.
