Faurecia is expected to announce today, July 10th, its plans to sell one of its plants in France and cut jobs at another factory as it struggles with low demand in Europe.
The French auto parts maker Faurecia is majority owned by PSA Peugeot Citroen and it will soon officially announce its plans to a plant in the town of Evreux, near Paris, which will be bought by an industrial company who will keep the 90 workers at the site, but use the building for other purposes. Faurecia contributed €1.8 billion in cumulative earnings to Peugeot in 2006-2012, while the core auto division lost €1.2 billion.
Faurecia will also transfer the painting operations at its plant near the city of Rennes to other facilities, and will include a voluntary job cut plan. In November Faurecia was announcing its plans to cut 3,000 jobs in France or 7.5% of its workforce by the end of 2013, which will help the company deal with the sluggish European market and cut costs by 100 million euro in 2012 and 90 million euro in 2013.
“Our objective is to stop the bleeding in Europe next year. We have lost significant cash flow in Europe, and we have to adapt,” Faurecia CEO Yann Delabriere.