Struggling PSA to slash 8,000 jobs in France and close plant
Source: Agencies |
July 13, 2012, Friday
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STRUGGLING French carmaker PSA Peugeot-Citroen, facing diving sales in crisis-hit southern Europe, unveiled a drastic cost-cutting plan yesterday to slash 8,000 jobs in France and close a major factory north of Paris.
Workers at the plant in Aulnay-sous-Bois walked off the job and staged a protest in front of the site, one of France's biggest car factories and a bastion of automaking and autoworkers' unions.
Company management announced the job cuts and closure plan during a meeting yesterday with its worker representatives.
The company, which warns it faces a first-half loss of 700 million euros (US$858.2 million) this year, is trying to save 1 billion euros as it struggles to compete in Europe's fierce car market. It is suffering amid a slump in sales in the recession-hit south of Europe, and saw sales plunge 20 percent in Europe in the first quarter.
The restructuring plan also includes cuts of 1,400 jobs at the company's Rennes factory and 3,600 jobs in other French sites. The company employs about 100,000 people in France and 209,000 people worldwide. The announcement came after the company unveiled plans last year to cut 6,000 jobs.
Chairman Philippe Varin, grim-faced, told reporters that the company is losing about 100 million euros per month. "No one will be left along the side of the road," he pledged.
The company is hoping a new alliance with General Motors Corp will allow it to return to long-term profitability.
About 250 striking workers gathered in front of the Aulnay-sous-Bois plant after the announcement.
"It's a feeling of disgust because PSA has played with us for a year, over a year now, saying that it's not certain, we're not going to close," said Khenniche of the SUD union, 42, who has worked at PSA Peugeot Citroen for 17 years.
In the first quarter, Peugeot Citroen's core automotive division saw revenue from new vehicle sales shrink nearly 17 percent to 6.98 billion euros. The company's worldwide sales totaled 790,100 vehicles in the first quarter. Peugeot Citroen's car parts, financing and logistics divisions managed to partly offset weakness in the car making business.
Under the alliance with GM, the US firm became the French automaker's second-largest shareholder with a 7-percent stake, behind the Peugeot family, whose stake fell from 31 percent to 25 percent.
Peugeot says the deal will allow it to address tightening emissions targets in Europe and boost its position in emerging markets.
Workers at the plant in Aulnay-sous-Bois walked off the job and staged a protest in front of the site, one of France's biggest car factories and a bastion of automaking and autoworkers' unions.
Company management announced the job cuts and closure plan during a meeting yesterday with its worker representatives.
The company, which warns it faces a first-half loss of 700 million euros (US$858.2 million) this year, is trying to save 1 billion euros as it struggles to compete in Europe's fierce car market. It is suffering amid a slump in sales in the recession-hit south of Europe, and saw sales plunge 20 percent in Europe in the first quarter.
The restructuring plan also includes cuts of 1,400 jobs at the company's Rennes factory and 3,600 jobs in other French sites. The company employs about 100,000 people in France and 209,000 people worldwide. The announcement came after the company unveiled plans last year to cut 6,000 jobs.
Chairman Philippe Varin, grim-faced, told reporters that the company is losing about 100 million euros per month. "No one will be left along the side of the road," he pledged.
The company is hoping a new alliance with General Motors Corp will allow it to return to long-term profitability.
About 250 striking workers gathered in front of the Aulnay-sous-Bois plant after the announcement.
"It's a feeling of disgust because PSA has played with us for a year, over a year now, saying that it's not certain, we're not going to close," said Khenniche of the SUD union, 42, who has worked at PSA Peugeot Citroen for 17 years.
In the first quarter, Peugeot Citroen's core automotive division saw revenue from new vehicle sales shrink nearly 17 percent to 6.98 billion euros. The company's worldwide sales totaled 790,100 vehicles in the first quarter. Peugeot Citroen's car parts, financing and logistics divisions managed to partly offset weakness in the car making business.
Under the alliance with GM, the US firm became the French automaker's second-largest shareholder with a 7-percent stake, behind the Peugeot family, whose stake fell from 31 percent to 25 percent.
Peugeot says the deal will allow it to address tightening emissions targets in Europe and boost its position in emerging markets.
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