PSA, Dongfeng to drop 2 China plants, halve workforce, Reuters reports

BEIJING/PARIS -- PSA Group and partner Dongfeng Motor have agreed to cut thousands of jobs in China and drop two of their four shared assembly plants, according to a document seen by Reuters, in a last-ditch bid to curb mounting losses as the world's largest auto market loses steam.

Dongfeng Peugeot Citroen Automobiles (DPCA), the automakers' joint venture based in Wuhan, central China, will halve its workforce to 4,000 as it closes one plant and sells another under plans agreed last month between PSA CEO Carlos Tavares and Dongfeng Chairman Zhu Yanfeng, the document showed.

Both automakers declined to comment on details of their restructuring plans.

"We are working with our partners to improve the overall performance of our business in China in all its dimensions," a PSA spokesman said.