PSA to cut jobs and output at French plant, unions say
STRASBOURG, France (Reuters) -- PSA/Peugeot-Citroen will cut 300 jobs as it reduces output at its factory in Sochaux, eastern France, starting in November, trade union officials said.
The cuts will take effect on an assembly line producing two Peugeot models and the Citroen DS5, unions said.
Under new CEO Carlos Tavares, PSA is cutting industrial capacity to optimize plant utilization rates while reining in inventories of parts, materials and unsold vehicles to free up cash.
The Sochaux plant's biggest-selling model, the Peugeot 3008, is not due for a replacement until 2016.
"That's what concerns us," said Guy Misere, an official with the center-left CFDT union. "From here until 2016 it can only get worse."
The job cuts, which amount to half a shift at the plant, will reduce the assembly line's daily output to 489 vehicles from 649, the unions said
The cuts were announced to labor representatives at a works council meeting on Monday.
Managers at the Sochaux plant, which currently employs 10,800 workers, were not available for comment.