France’s prime minister is insisting there are no “presents” being handed out to PSA Peugeot Citroen as details of today’s state guarantee of finance for the automaker’s banking arm of up to EUR7bn (US$9.1bn) were unveiled.
There have been reports the French state is providing the guarantee in exchange for a softening of PSA’s tough restructuring plan, which could see up to 8,000 redundancies and the closure of its Aulnay plant, but the automaker insists the two are not linked.
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What the deal appears to have done is allow Banque PSA Finance to request a total of EUR11.5bn in cash facilities, of which EUR1bn is additional liquidity. The main credit facilities have been renegotiated, with draw-downs possible during the full 2013-2015 period.
However, what the French government has demanded is a guarantee monitoring committee comprising representatives from the state and the PSA group be set up.
A statement from the economics ministry notes approval of its finance guarantee will be put to a vote in the French parliament and the European Commission, although no timetable for this has been given.
PSA insists it still needs to continue with its drastic pruning in France and also responded to French prime minister Jean-Marc Ayrault’s comments today there were no “presents” being handed out.
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By GlobalData“Ayrault is asking we don’t leave anyone without a job,” a PSA spokeswoman in Paris told just-auto. “It means if we do redundancies – which we have to – we need to find [a] job for the person. Which is why we are working with other companies and authorities.
“We are working with some companies around Aulnay [for example] and saying ‘this is close to Paris and Charles de Gaulle [airport]’ and we do already have a pipeline of jobs that could be offered. It is not tomorrow morning [and] these jobs are not necessarily outside the auto sector – it could be logistics for example.”
PSA has already said that, of the 3,000 planned job cuts at its Aulnay plant, some 1,500 staff could be found other positions within the group, such as at Poissy.
Equally, the 3,600 administration staff to be culled will be made redundant on a voluntary basis although other positions are required to be found.
“If we don’t do anything, it will be not just [PSA Aulnay] in danger, also Rennes and Sochaux,” Ayrault said on French radio today. “There is a very important responsibility not to let this industry sector fall.
“Not at any price of course. My government does not have the intention to make presents without commitments. We have had some criticisms of the way in which this group has been managed – now we have to prepare the future.
“That is essential for the workers and for France.”
