PSA weighs cutting another 1,500 French jobs, union says

Related Topics

PARIS (Bloomberg) -- PSA/Peugeot-Citroen is considering cutting an additional 1,500 jobs in France in the face of continued production overcapacity, a union leader said.

"Our sources internally are telling us that management estimates the overstaffing in France at about 1,500 positions," Jean-Pierre Mercier, a CGT union official at PSA, said. "They may plan to cut these jobs through voluntary redundancies."

The cuts would come on top of the 11,200 French positions to be eliminated by PSA by 2015 under its current restructuring plan, Mercier said.

PSA declined to comment.

The CGT union has clashed in the last year with management, opposing the closing of PSA's Aulnay plant on the outskirts of Paris. The union unsuccessfully filed suits to block CEO Philippe Varin's restructuring plan to stem losses at the French manufacturer.

PSA plans a capital increase of 3 billion euros ($4.1 billion) after burning through 4 billion euros in the last two years as auto demand in its European home region sank.

The new funding is equal to 78 percent of PSA's value and follows a share sale in March of 2012 to raise 1 billion euros in which General Motors Co. bought a 7 percent stake that it later sold.

PSA stock today gained as much as 57 cents, or 5.5 percent, and traded up 4.9 percent as of 12:51 p.m. in Paris. The shares have climbed 77 percent in the last 12 months, valuing the manufacturer at 3.88 billion euros.

Contact Automotive News

Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

Or submit an online comment below. (Terms and Conditions)


Subscribe
 
 

Latest Headlines

More »
2014 Geneva Motor Show tease
2013 Rising Stars 
2013 Rising Stars 
Rocket Fuel