The French government has said that PSA/Peugeot-Citroën must make large job cuts in order to stay financially afloat. A large restructuring would also need to take place as the carmaker deals with the current European economic climate and a production capacity excess.

According to an Automotive News Europe report, the government of France launched an investigation into the "financial health" of PSA, and its results subsequently criticized several decisions the company made, including the shuttering of plants near Paris without leaving failsafe options for production like its Madrid factory.

The result of the study is that the French automaker plans on cutting 8,000 jobs – on top of the 3,500 axed last year. Also planned is the closing of its Aulnay plant near Paris, along with a significantly downsized workforce at its Rennes plant in western France. Last year, PSA's small car plants were running at only 61 percent of maximum capacity.

These job cuts will be augmented by a corporate restructuring, with the goal of an operating cash flow that breaks even by 2014. The report says that by then, the European car market may be in a state of recovery.


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    • 1 Second Ago
  • 11 Comments
      ijardine
      • 2 Years Ago
      Wasn't it only about 6 months ago that the same French Government refused to allow a downsizing of Pegeuot to take place? Gvts have no idea how to manage a real business.
        nsxrules
        • 2 Years Ago
        @ijardine
        Anytime the government gets involved in anything things get worse......
        ranucci
        • 2 Years Ago
        @ijardine
        the problem in france isn't governement... it's syndicates who can shut down the entire country if they want to... event if measures are necessary, they spend their time blocking every tiny change.
        ranucci
        • 2 Years Ago
        @ijardine
        the problem in france isn't governement...(at least not the only problem) it's syndicates who can shut down the entire country if they want to... event if measures are necessary, they spend their time blocking every tiny change.
      RobbieAG
      • 2 Years Ago
      So I guess that's how it works in France. A government official has to tell you it's okay to cut jobs to stay afloat. I'd hate to have to do business there.
        ranucci
        • 2 Years Ago
        @RobbieAG
        In fact the article isn't accurate. The governement report only confirms there is no other way than slash 8K jobs... (exactly the oposite to what our new president said before the election). But the job supressions were announced by Psa months ago
        nsxrules
        • 2 Years Ago
        @RobbieAG
        Next they will fire the CEO of the compnay, like Obama did to Wagoner......
          thequebecerinfrance
          • 2 Years Ago
          @nsxrules
          They should. If teh company is not making profits the CEO is to blame, he is the top dog and it is his responsability. He can blame this and that but a the end it is HIS failure. But nowadays CEOs just cah in the checks and blame everyone else for their problems.
      Nicolas
      • 2 Years Ago
      This is quite an inaccurate representation of the situation. Peugeot/PSA wants to cut 8K jobs and the French government is not too pleased about it and requested that PSA finds ways to limit the numbers of layoffs. That's pretty much the opposite of what Autoblog reported. See NYTimes article for a better recount. http://www.nytimes.com/2012/07/13/business/global/psa-peugeot-citroen-to-cut-8000-jobs-in-france.html That fact that a government would intervene in a private company's business is questionable. However, when said company received millions of bailout government money recently, I don't find it objectionable that the government would have questions about cutting jobs.
      Codeman
      • 2 Years Ago
      Sucks. The recent new Peugeot cars look real nice and are well received by the press. These economical problems seem so significant that I assume they'll have an impact on their cars - less R&D, fewer model updates, etc.
      Nicolas
      • 2 Years Ago
      This is quite an inaccurate representation of the situation. Peugeot/PSA wants to cut 8K jobs and the French government is not too pleased about it and requested that PSA finds ways to limit the numbers of layoffs. That's pretty much the opposite of what Autoblog reported. See NYTimes article for a better recount. http://www.nytimes.com/2012/07/13/business/global/psa-peugeot-citroen-to-cut-8000-jobs-in-france.html That fact that a government would intervene in a private company's business is questionable. However, when said company received millions of bailout government money recently, I don't find it objectionable that the government would have questions about cutting jobs.
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