PSA Peugeot Citroen is not ruling out implications for staffing levels as it revealed further details of its European rationalisation plans.
The French automaker plans to rationalise European operations, but will discuss any potential issues first with its trade unions before making concrete decisions.
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Three European countries – Switzerland, Germany and the UK – have been earmarked for the move that will see Peugeot Germany in Saarbrucken move to Citroen in Cologne for example – but PSA maintains dialogue has to be finalised with its labour bodies.
“There are some projects, but only projects in Switzerland, Germany and the UK,” a PSA spokeswoman in Paris told just-auto. “They are only projects in the sense they need to be discussed with the unions.
“It is a common grouping of operations – sales, administration, after-sales and marketing departments. Production is already common to our plants.”
Unions will take a keen interest in the discussions with PSA as the manufacturer is not ruling out redundancies as a result of the synergies.
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By GlobalData“We don’t know for now about the job implications,” said the PSA spokeswoman. “There could be.”
The final number of countries which will be reorganised has yet to be confirmed, but the rationalisation is due to take place this year.
“There are some countries in Europe where we are only one brand, for instance in Sweden it is only Citroen,” said the PSA spokeswoman.
The French automaker is attempting to cost costs and capacity after posting a US$773m loss last year and as speculation refuses to disappear concerning its C3-producing plant at Aulnay north east of Paris.
Hardline French union CGT, maintains there could be an announcement concerning Aulnay following the eventual outcome of the Presidential elections.
Last night [22 April] saw socialist candidate, Francois Hollande narrowly beat incumbent, Nicolas Sarkozy in the first round, with both men now engaged in a straight fight for the keys of the Elysée Palace on 6 May.
Sarkozy and Hollande have made the future of France’s auto industry a key electoral battle ground, with the current President announcing only last week threatened Renault cylinder head supplier, Fonderie du Poitou Aluminium (FPA), had secured a buyer, Saint Jean Industries and investment worth US$48m, saving 390 out of 450 jobs.
