Speculation that Peugeot is to close its West Midlands plant has been branded "nonsensical" by the company.

Peugeot spoke out following reports thousands of jobs at its Ryton plant, near Coventry, were under threat.

Speaking at the Paris motor show, Chief Executive Jean-Martin Folz reportedly said the company had to answer "difficult" questions and that no site has "guaranteed status".

However, a spokesman for Peugeot said it would be "crazy" to suggest the Ryton plant was in danger of shutting down.

Peugeot will recruit 700 new workers at Ryton

Peter Haines, press relations manager, told BBC News Online: "Ryton is about to go on to a fourth shift pattern and in doing that, it becomes pretty much one of the most productive car plants in Europe, possibly the world.

"Few car plants are operating on a four-shift basis."

He added that Ryton was also in the process of recruiting 700 new employees to deal with the increase in production at the plant.

"Concern that the plant is on the cusp of closure is nonsensical."

In February, the company announced it would build the estate version of the popular 206 at Ryton and described the move as a "huge confidence boost" in the plant.

Major manufacturer

Then in September, the company announced the latest version of Peugeot's 206 - the GTi 180 - would be made exclusively at the factory.

The Ryton factory, which employs about 3,000 people, already produces the standard range of 206s and the estate model, the 206 SW.

Peugeot is the second biggest car manufacturer in the UK, outstripped only by Nissan's plant in Washington, in North East England.

Next year it will manufacture 230,000 cars, up from 200,000 this year.