Peugeot Might Close the Aulnay Plant This September Due to Strikes image

PSA Peugeot Citroen might close the Aulnay plant this year, as strikes disrupt production, according to anonymous sources.

The sources said that PSA Peugeot Citroen might close the facility as soon as September due to the continuous strikes. In 2012 the automaker announced its plan to stop production of the Citroen C3 compact car at the Aulnay plant, which has around 3,300 employees, sometime in 2014 as the company tries to bring profit on the breakeven level amid the European crisis.

Last year Peugeot reported an operating loss in Europe of 576 million euro and announced its two-year plan to cut 11,200 jobs in France, or 17% of its workforce in the country.

“The intention of Peugeot management is to go on producing the C3 at Aulnay to satisfy the demand of its customers while accompanying its workers in their transition to other careers,” said Jean-Baptiste Mounier, a spokesman for Peugeot, declining to comment further.

Production at the Aulnay plant has been disrupted by CGT labor union’s strike since January 16th. Currently the facility manufactures 40-50 vehicles daily, which is less than 16% of the plant’s daily capacity of 250 units. During the first quarter Peugeot’s sales fell 15% in Europe to 345,258 units, compared with a 9.7% fall of the European auto market.

Source: Bloomberg