PSA, Fiat put Sevelnord exit terms to works council
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PSA/Peugeot-Citroen and Fiat said they had presented the terms of a Fiat exit from their shared commercial van plant in northern France to employee representatives.
Although PSA is due to take full control of the Sevelnord plant by the end of December, the proposed terms say the plant will continue to produce light commercial vehicles for both companies until new emissions standards arrive at the end of 2016.
"The parties expect to enter into definitive agreements in all these respects before the end of 2012," the automakers said on Wednesday.
Workers at Sevelnord, which assembles the Peugeot Expert, Citroen Jumpy and Fiat Scudo commercial vans under the partnership, were asked in May to agree to a pay freeze, hundreds of job cuts and other concessions or face possible closure.
PSA, which is heavily exposed to European markets suffering under the region's debt problems, is under pressure to make big savings through restructuring its operations after net debt at the company increased to 3.4 billion euros at the end of 2011.
Reuters contributed to this report
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