PSA poised to close Aulnay-sous-Bois
Submitted by Citroenesque on Mon, 09/07/2012 - 4:40pm
"French car giant PSA Peugeot Citroën is expected to announce the closure of its historic Paris plant at Aulnay-sous-Bois, spelling deep trouble for the 3,300 strong workforce and the already disadvantaged surrounding region.
"The scale of the “disaster” will become clear in the coming days, with PSA Peugeot Citroën expected to announce further details of its cost cutting plan, which could see the loss of up to 10,000 job nationwide....
"...If PSA bosses are facing rising anger from their anxious workforce on one side, they are also under pressure because of their declining share in France’s stumbling automobile industry.
"According to the latest figures from France’s car manufacturing association CCFA, PSA Peugeot Citroën, the country’s biggest and most symbolic car maker, suffered a 10 percent drop in new vehicle registrations in June 2012.
"The outlook looks unlikely to get any brighter for PSA, with the head of the CCFA, Patrick Blain, predicting an 8% to 12% decline in the overall French automobile market in 2012.
"For PSA bosses, that gloomy outlook, the rising production costs and the fact that some of their factories, including the Aulnay plant, are reportedly functioning as much as 50% below their capacity, justifies their €1billion cost reduction plan."
source: France 24
This will have implications for the Citroen Conservatoire, of course. I think the rumour is that the collection will be moved, not broken up. Hopefully we get confirmation this week.
There was some speculation that the Conservatoire would be moved possibly Valenciennes. Which is very much Citroen's most modern plant.
Very interesting that Phil -
Very interesting that Phil - I wonder if they will simply relocate the cars from the Conservatoire, or will be selling them off...
There's some incredible cars in that place...
News update
PSA Peugeot Citroën have announced 8000 job cuts today.
"Union reaction was uncompromising, describing the announcement as a "declaration of war" and an "earthquake," with the hardline stance certain to add to the problems facing the new Socialist government....
....the auto division is expected to report an operating loss of some 700 million euros ($860 million) for first half 2012, producing overall a net loss for the period.
PSA said in a statement that it would cease production at its Aulnay site near Paris which employs 3,000, with 1,400 jobs going at its Rennes plant.
In addition, some 3,600 jobs will be cut across the corporate structure, as the company continues "reducing costs and improving its operating efficiency."
"I am fully aware of the seriousness of today's announcements, as well as of the shock and emotions they will arouse," chairman Philippe Varin said in the statement.
The depth and persistence of the crisis impacting our business in Europe have now made this reorganisation project indispensable in order to align our production capacity with foreseeable market trends," Varin said.
The measures should allow the company "get back on track" and secure its future as well as auto production in France, he added.
PSA, trying to cut the overcapacity that is blighting the whole European industry, announced earlier this year a tie-up with US giant General Motors in an effort to cut costs.
Previously released figures showed PSA first half European sales down 18 percent to 980,000 cars and commercial vehicles, with its market share falling to 12.9 percent from 13.9 percent.
No news yet on the fate of the Conservatoire...