West Midlands Car Plant Closure

Peugeot is to close its car plant at Ryton near Coventry with the loss of 2,300 jobs, it has been announced.

The plant, where the Peugeot 206 is made, is to cease production in the middle of next year.

Union officials reacted with anger, calling the decision "another nail in the coffin" of the UK's car industry.

It is a second blow to the West Midlands car industry - nearly 6,000 jobs were lost last year at MG Rover in Longbridge, Birmingham.

The 206 model will continue to be produced at a plant north of Paris.

Jean Martin Folz, chief executive of Peugeot Citroen, said on Tuesday a study showed Ryton had high production and logistical costs.

This meant the group was unable to justify the investment needed for the production of future vehicles.

Manufacturing now accounts for only 5% of UK employment.