Peugeot-Citroen deleted 8,000 jobs in France

The French car maker PSA Peugeot Citroen said Thursday the elimination of 8,000 jobs in France due to the weakness of the European market, causing an angry reaction association and the rejection of the plan of the government of socialist Francois Hollande.

The French government is expected this announcement, but it is still a “real shock” to the country, said Prime Minister Jean-Marc Ayrault, at a time when other plans are outlined redundancies in French industry.

Hollande, “extremely concerned” about the announcement, has asked his team to “do everything to limit the social consequences” of it.

Earlier, the Minister of Productive Recovery, Arnaud Montebourg, had stated before the Senate that the government “not accept” the plan of PSA.

In the Paris Stock Exchange, after opening on the rise, the price of title PSA declined progressively to its lowest level since 1989. At the end the action of PSA 7.020, representing a fall of 1.74%.

PSA Peugeot Citroën, French car first group (100,000 workers in France) and second in Europe after the German Volkswagen, claimed losses in the first half of the year and a lasting reduction in European markets to justify those decisions, in addition to other measures announced in late 2011.

“I am aware of the seriousness of the ads are doing and the excitement caused in the company and its environment,” said PSA chairman, Philippe Varin.

But he added the official, “the breadth and durability of the crisis affecting our business in Europe become essential this reorganization project that allows us to adapt our production capacity to the likely trend in the markets.”

This new plan provides a view of the assembly in the factory of the firm in Aulnay, a suburb of Paris (3,000 seats), the removal of 1,400 jobs at the factory in Rennes (Brittany, west) and 3,600 jobs in other plants.

The cessation of production in Aulnay is the first closing of a car factory in France since the Renault in Boulogne-Billancourt (Paris suburbs) in 1992, meaning the end of the automotive industry in the French capital, which broke its boom in the early twentieth century.

The government accuses the former right-wing president Nicolas Sarkozy, defeated by the socialist Francois Hollande’s presidential election on May 6, had asked the companies atrasasen plans layoffs during the election campaign.

This plan is “typically one of those that Nicolas Sarkozy called for delay instead of seeking solutions,” said Labour Minister Michel Sapin.

Prime Minister PSA asked to undertake a “fair agreement” with the unions to consider “all options”.

A plan to help the car industry will be announced July 25 by the Minister of Productive Recovery, who fears “a shock to the whole country.”

 

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