PARIS (Reuters) -- French supplier Faurecia said today that it plans to close a plant producing seat frames in eastern France, with the loss of 78 jobs.
The Nompatelize seat-frame factory will close at the end of the year, the company said in a statement.
Domestic vehicle production by French carmakers Renault and Faurecia's parent, PSA/Peugeot-Citroen, has fallen 40 percent since 2007 to 1.5 million last year as demand for new cars slumped and manufacturers transferred assembly lines to lower-wage economies.
Over the past three years, the Nompatelize site has responded to falling sales with temporary layoffs and staff transfers to other Faurecia sites, the company said.
"The current levels of activity and forecasts are not sufficient to maintain operations in the face of ongoing losses," the statement said.
Staff representatives were informed of the closure decision at a works council meeting earlier today, Faurecia said.