France’s President Calls Unacceptable Peugeot’s Plan to Cut 8,000 Jobs image

Saturday, July 14th, President Francois Hollande announced that that he doesn’t accept PSA Peugeot-Citroen’s plan to cut 8,000 jobs and said it must be renegotiated.

On Thursday, July 13th, PSA announced its plan to cut 8,000 jobs and to close an important plant north of Paris. Regarding this plan President Francois Hollande said that it is unacceptable and that it was a shock for workers. He wants an expert to assess the company’s finances and offer recommendations for Peugeot. The government will soon present a plan for the car industry, and also incentives to buy French-made cars.

When Hollande campaigned for the presidency he promised to reinvigorate France’s manufacturing sector and also prevent jobs from going to Asia. It seems that he tries to keep his promise, by sorting out France’s auto industry. PSA which already faces a loss of 700 million euro ($850 million) this year, wants to save 1 billion euro to be able to compete in Europe’s stagnant car market.

PSA declared that the decision to cut 8,000 jobs was taken earlier this year, but the announcement was put off in order not to become an issue during the election campaign.