French Industry Minister Requests Talks With Peugeot image

According to French Industry Minister Arnaud Montebourg, PSA Peugeot Citroen has to discuss its plan to lay off 8, 000 employees and close a plant in the country.

“We don’t accept the plan as it is, ” Montebourg said. “We believe that there have to be restructuring steps, but that the measures that are currently proposed don’t appear to us to be of the sort to bring back Peugeot.”

Yesterday he announced ‘tripartite’ talks with Labor Minister Michel Sapin, Peugeot’s management and the labor unions on October 25th, after taking with worker representatives present at the Paris auto show. Laurence Parisot, the head of Medef, a French business organization, criticized in an interview given before Montebourg’s announcement, that the government’s “excessively interventionist” approach and its intervention in talks that should take place only between the automaker and its worker, will only worsen the situation.

Recently Peugeot announced it will slow production of its Peugeot 208 subcompact and cut a production shift by the end of this year due to severely decreased European sales. Spokeswoman Marie-Paule Baisy said that the automaker will reduce the hourly production rate at the Poissy plant from 52 to 35 beginning October 10th and another cutback will be made in December.