FRANCE: PSA restructuring delayed by court ruling – plants slow
By Chris Wright | 29 January 2013
PSA Peugeot Citroen will continue negotiations with unions to cut 8,000 jobs in France despite a court ruling that could delay their implementation.
The Paris appeal court yesterday ordered a temporary suspension of the restructuring until the group completes consultations at two sites belonging to parts division Faurecia.
However, the court rejected an application by the CGT union to stop PSA’s moves to cut jobs completely.
Talks are also continuing over the decision announced last July to close the Aulnay plant near Paris. The CGT union had challenged the plan in court by arguing that it had failed to consult workers at two Faurecia sites that would be directly affected by the Aulnay closure and other cutbacks at the parent company.
A PSA spokesman said that the company will begin consultations at Faurecia without delay, in compliance with the ruling.
Under the terms of the ruling, the Faurecia talks will have to be completed before PSA can carry out the broader restructuring programme.
Separately PSA has halted production in its factory in Trnava, western Slovakia due to declining demand for new cars in Europe. Further stoppages are planned in February.
A spokesman told SITA news agency that, during non-productive days, employees will be paid as agreed with the trade unions. Despite the stoppages, the carmaker plans to produce more cars this year than in 2012, when 215 000 vehicles rolled off production lines in Trnava.
Production at TPCA, the Czech car assembly plant jointly owned by PSA and Toyota fell by a fifth to 215,000 vehicles last year because of weak European demand.
The plant makes the Toyota Aygo, Peugeot 107 and Citroen C1.
Expert analysis
France Autos Report Q1 2013
France Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on France's automotive industry.
Sectors: Vehicle manufacturers, Vehicle manufacturing, Vehicle markets
Companies: PSA, Faurecia, Peugeot, Citroen, Toyota
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FRANCE: PSA restructuring delayed by court ruling – plants slow
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