Peugeot Hit Hard by Sales Decline, Plans to cut 10,000 jobs image

French carmaker Peugeot suffered a 10 percent decline in new registrations last month. That was far worse than the 0.9% contraction in the overall market, according to latest data from France’s auto makers’ association, CCFA.

Peugeot s raising its job-cutting target for France to 8,000-10,000 substantially higher than a previously announced plan for 4,000 layoffs, Christian Lafaye, the head of Peugeot’s second- biggest union FO, said in an interview with Bloomberg.

The plan could result in up to 10 percent of Peugeot workers in France losing their jobs, the reports said.

Peugeot had 100,356 employees on permanent and temporary contracts in France at the end of 2011. Globally, it had 209,019 workers at the end of last year.

French, Italian and Spanish car sales tumbled in June, rounding off a gloomy first half for Europe’s auto industry where even the German market may not escape the effects of grim economic conditions.

Sales of new cars in France slipped by 0.9 per cent in June on the basis of unadjusted data and a 12-month comparison to 208,225 vehicles the manufacturers’ organisation CCFA said.