Arab Today, arab today peugeot cuts 8000 jobs as france battles crisis
Last Updated : GMT 07:16:26
Arab Today, arab today
Arab Today, arab today

Peugeot cuts 8000 jobs as France battles crisis

Arab Today, arab today

Arab Today, arab today Peugeot cuts 8000 jobs as France battles crisis

Paris - AFP

French carmaker PSA Peugeot Citroen shocked France yesterday with an announcement that it will cut 8,000 jobs, sparking union anger and underlining the country’s competitiveness problems. Unions slammed the announcement as a “declaration of war” and an “earthquake,” with the hard-line stance certain to add to the problems facing the new Socialist government as it deals with France’s flagging economy. President Francois Hollande was elected in May on a promise to put the economy back on track, focusing on growth rather than the austerity policies adopted across Europe in the face of the eurozone debt crisis. Prime Minister Jean-Marc Ayrault said the layoffs were “a real shock” and announced that the government would present its rescue plan for the struggling auto industry on July 25. The auto industry is strongly unionized and a major employer in French manufacturing, with job losses there having a knock-on effect on the wider economy. PSA, France’s biggest carmaker and second in Europe to Germany’s Volkswagen, said it expected the European market to shrink eight percent this year and had to adjust its business in the face of the worsening outlook. For the period 2007-12, the market is down 23 percent, it said, compounding problems which left its plants operating at just 76 percent of capacity in the first half of this year. PSA said the problem was even worse in the small car segment, which accounts for 42 percent of its sales “and where most of the competing models are made in low-cost countries.” As a result, the auto division is expected to report an operating loss of some 700 million euros ($860 million) for the first of half of 2012, producing overall a net loss for the period. PSA said in a statement that it would cease production at its historic Aulnay site near Paris which employs 3,000 people, with 1,400 jobs also going at its Rennes plant. In addition, some 3,600 jobs will be cut across the corporate structure, as the company continues “reducing costs and improving its operating efficiency.” The company employed a massive 100,000 people in France at the end of 2011. The Aulnay closure is the first of a car factory in France since Renault’s iconic plant at Boulogne-Billancourt closed down 20 years ago. Peugeot boss Philippe Varin vowed that “nobody would be left by the wayside.” “The depth and persistence of the crisis impacting our business in Europe have now made this reorganization project essential in order to align our production capacity with foreseeable market trends,” Varin said in a statement. But he rejected the idea of the state injecting capital into the firm. “We have big financial security,” Varin told journalists later. “This matter is not on the agenda.” He said Peugeot would present further ideas, including plans to “adjust investments” and a “muscular effort” to cut costs, on July 25 when it next announces quarterly results. PSA, trying to cut the overcapacity that is blighting the whole European industry, announced earlier this year a tie-up with US giant General Motors in an effort to cut costs. Previously released figures showed PSA first half European sales down 18 percent to 980,000 cars and commercial vehicles, with its market share falling to 12.9 percent from 13.9 percent. “As soon as Peugeot announces the loss of 8,000 to 10,000 jobs, you have to multiply by three or even four to measure the impact in terms of jobs for the entire country,” CGT union Bernard Thibault said, vowing that his union would “react.” Union officials said the Aulnay factory had ceased work after the announcement yesterday but Peugeot said it was still mostly running. Outside the plant, angry employees told journalists they would fight the lay-offs. “We are declaring war on PSA. For a year we have heard nothing but lies,” said one of the employees, dressed in his grey work uniform. “We are a social and political bomb,” said CGT delegate Jean-Pierre Mercier. “I don’t know to what extent we can make them back down, but we will cost them very dearly.” Ayrault this week said the government would make legislative changes next year to reform France’s system of using payroll charges to fund social welfare programs in a bid to lower labor costs and boost competitiveness. “Prospects must quickly be found, as much to ensure the future of social welfare as to increase the competitiveness of our businesses,” Ayrault told a conference gathering unions and employers. France’s trade deficit remains high and ministers in Hollande’s new government have raised concerns that low competitiveness is stifling the economy and hampering job creation.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today peugeot cuts 8000 jobs as france battles crisis Arab Today, arab today peugeot cuts 8000 jobs as france battles crisis

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday