France in shock

Peugeot closes two major plants

French concern PSA Peugeot-Citroen is desperately fighting for survival, sinking deeper and deeper into the depths of the crisis. The company plans to close two plants north of Paris, cutting 8,000 jobs.
The famous carmaker may lose 700 million euros ($1 billion) in the first half of the year due to competitive setbacks in the stagnant European car market. By closing factories, the company will try to save 1 billion euros. PSA Peugeot-Citroen's car sales fell 20% in the first quarter of this year. The restructuring plan includes cutting 1,400 jobs at the Rennes plant and 3,600 at other French subsidiaries. Peugeot-Citroen employs about 100,000 people in France and 209,000 in other countries. The company announced last year that it plans to cut 6,000 jobs this year.
Philippe Varin, the automaker's executive director, bitterly stated that the company was losing about 100 million euros a month. He vowed: "We will not be kicked to the side of the road.
Peugeot produced its first car in 1891. Peugeot-Citroen accounted for two-thirds of French car production. Prime Minister Jean-Marc Ayrault said the unveiled plans were "unprecedented ... and a real shock.

Based on foreign press for ForTrader.org