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Last Updated: Thursday, 16 February 2006, 13:31 GMT
Government officials meet Peugeot
Peugeot 206
Peugeot 206, made at the Ryton plant in Warwickshire
The government has said it is working to secure the future of Peugeot's Ryton car factory in Warwickshire.

Jim Cunningham raised the issue of the plant in the Commons eight days after its parent company PSA Peugeot Citroen announced a drop in profits of 37.5%.

The Coventry South MP said the manufacturing sector needs the government's support.

Ministers said that they have held talks with Peugeot and more meetings will follow.

Mr Cunningham told trade minister Alun Michael that while he appreciates there has been considerable investment in the West Midlands, considerably more is needed - particularly in manufacturing.

'Very positive'

He said: "There is serious concern now about what the intentions are regarding Peugeot.

"Can he tell me what discussions he's had with the company about future investment in models?"

Mr Michael told the Commons that he had had a "very positive" response from Peugeot's chief executive over the government's wish to work closely with the company.

"These are obviously commercial decisions for the company but we continue.

"For instance my officials have a meeting with the company in the next few days to maintain those contacts."

PSA Peugeot Citroen said a "marketing offensive" this year should help to boost its sales in western Europe.

Peugeot's UK main office is in Stoke Aldermoor, Coventry. A few miles away, the Ryton plant produces the 206 model.

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