Win with Mitsubishi Mirage!

To coincide with the launch of its Mirage hatchback, Mitsubishi is giving away two Mirages with insurance for a year!

Win with Dunlop!

Stand a chance of winning a HD-capable GoPro HERO3+ Silver Edition camera, worth more than R5000!

Peugeot to slash 8000 jobs

2012-07-12 13:57

BASTION FOR FRENCH WORKERS TO CLOSE: The Aulnay-sous-Bois factory, a bastion for French vehicle manufacturers (above) is set to close its doors as French automaker’s Peugeot-Citroen try to recoup its losses.

 
PARIS, France - Struggling French automaker PSA Peugeot-Citroen has announced a drastic cost-cutting plan to slash 8000 jobs in France and close a factory north of Paris to counter poor sales in crisis-hit Europe.

The automotive group, facing a R7.1-billion loss in 2012, is trying to save R10-billion as it struggles to compete in Europe's fiercely competitive vehicle market.

The group is suffering amid a slump in sales in the recession-hit south of Europe - down 20% during the first quarter of 2012.

AU REVOIR FRENCH BASTION

The restructuring plan includes the closure of Peugeot-Citroen's Aulnay-sous-Bois factory, one of the biggest vehicle plants in France and seen as a bastion of vehicle production.

The company will also cut 1400 jobs at its Rennes factory and 3600 in other French sites.

CEO Philippe Varin said that the company was losing about R1-billion a month though he pledged: "Nobody will be left along the side of the road."

The company is hoping a new alliance with General Motors will allow it to return to profitability.

CGT union member Jean-Pierre Mercier said: "It's no longer possible to continue to lose jobs like this. We have to come together to make the management back down."

Union members are already protesting on the streets.

NEXT ON WHEELS24X

Read Wheels24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining

Inside Wheels24

Meet the Mitsubishi Mirage - the ultimate city hatchback

Mitsubishi Motors has officially launched the Mirage in South Africa. To coincide with the launch of its fun hatchback, Mitsubishi is running an exciting social media competition where it’s giving away two Mirages with insurance for a year!

There are new stories on the homepage. Click here to see them.