In a sign that Peugeot’s troubles are far from over, the French carmaker has announced that it plans to shut down and sell its 30-year-old Meudon plant on the outskirts of Paris. However, the company said none of the plants’ 660 employees will lose their jobs.
According to a report from the Financial Times, Europe’s second-biggest automotive group by sales, PSA Peugeot-Citroen, said the activities of the Meudon site (mainly R&D) will be redistributed among its other Parisian sites, with employees to be transferred by the end of next year.
It is the second plant Peugeot decides to close after last year’s announcement that it will shut down the Aulnay facility near Paris, with 2,200 jobs to be lost in the process. The decisions to close the two plants are part of a restructuring program, as Peugeot is trying to adapt to lower demand in Europe, the region where it sells most of its vehicles.
Peugeot announced a plan to cut 6,000 jobs in France, but a four-month strike by the CGT union at its Aulnay plant has prevented the company from applying it. However, since the strike was settled last week, the planned layoffs remain valid.
PSA Peugeot Citroen reported a record net loss of €5 billion in 2012 and was forced to secure a €7 billion rescue package from the French state.
Peugeot says it needs to make job cuts and sell property in order to increase efficiency. Last year the company raised €2 billion in property sales and aims to cash in another €200 million this year.
By Dan Mihalascu
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