France’s PSA Peugeot Citroen is increasing its full-year savings target and plans to close the Aulnay plant, union officials said on Thursday.
CEO Philippe Varin told workers’ representatives that the car maker’s target to cut 1 billion euros ($1.25 billion) “will not be enough“, senior Force Ouvriere union official Jean-Francois Kondratiuk told Reuters.
Also, the company told workers that plans to reduce production of the Peugeot 208 small car at Poissy, west of Paris, by at least one third.
Peugeot SA (UG) and General Motors Co. (GM)’s Opel unit may start building cars in each other’s plants in France and Germany even if for the moment GM is denying the report that was first published by Frankfurter Allgemeine Zeitung.
The newspaper report is “pure speculation,” Ulrich Weber, a spokesman for Adam Opel AG in Ruesselsheim, said in an e- mailed statement.