France’s Prime Minister has expressed his ‘great shock’ at this morning’s (12 July) announcement by PSA Peugeot Citroen it will slash an initial 6,500 posts across the country as it looks to stem huge overcapacity and plunging European demand.
Jean-Marc Ayrault – France’s second in command to President Hollande – only took the reigns of power a matter of weeks ago but is now being forced to react to the closure of PSA’s Aulnay plant, huge job cuts at its Rennes site and massive lay-offs across the country that are bound to stoke huge union ire
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Ayrault summoned Economic Redevelopment Minister, Arnaud Montebourg, to his official Matignon residence today in Paris and instructed him to present an automotive support plan for France to the Cabinet by 25 July, the same day on which PSA is due to convene a Works Council meeting and unveil its half-year results.
“The Prime Minister is shocked by the unprecedented scale of PSA’s plan, both for the regions affected and more widely, for the automotive industry as a whole,” said a statement sent to just-auto from Montebourg’s Ministry in Paris.
“With regard to the social stakes linked to the plan announced, we have to understand the current causes of the situation that led to this plan, its consequences, as well as what guarantees the Group can offer to maintain long-term industrial activity.
“PSA has explicitly committed itself to finding an employment solution for each member of staff. The government will make sure it checks this is carried out and will ensure proposed solutions are credible and sustainable.”
Montebourg is due to appear on French television at 20:00 this evening to discuss PSA on the France 2 station.
