PSA Peugeot Citroen is denying any meeting has taken place between CEO Philippe Varin and French President Nicolas Sarkozy as rumours continue to circulate as to the future of the automaker’s Aulnay plant near Paris.

The site, which produces PSA’s C3 model, has been the subject of considerable speculation with its possible closure mooted in an internal report by the manufacturer last year and leaked by the CGT union.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

However, widespread reports in France indicate Sarkozy – just ten days away from the first round of Presidential elections – has summoned Varin to his headquarters of the Elysée Palace in Paris for urgent talks surrounding the plant.

“Monsieur Varin has not seen him [Sarkozy] yesterday, there has not been a meeting,” a PSA spokesman told just-auto from France. [PSA] is a private business. We are always ready to discuss with the State, but we are a private business.

“Nothing is happening particularly at Aulnay. The factory produces the C3 and we have said up to 2014 the factory will continue to produce the C3 – after that we have no comment to make – 2014 is already far away. Like all constructors, we don’t comment on plans in advance.”

See Also:

Contacted by just-auto, the Elysée Palace said it had fielded “a lot of questions” but noted it had not seen anything official concerning any meeting between the President and the PSA CEO.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Automotive jobs have soared to the top of the French Presidential election agenda, with manufacturers and suppliers courted by most parties.

However, the Europe-wide problem of over-capacity refuses to disappear with Aulnay alone losing 1,500 jobs since 2004.

Varin has also emphasised a reduction of production capacity for the group is unavoidable.

The CGT union was not immediately available for comment.