On March 16th PSA Peugeot Citroen will hold a special European works council meeting to present the effects of the recent tie-up with the U.S. giant, GM.
“All the French, Spanish, British and German members of PSA’s European works council asked for an extraordinary meeting concerning the PSA-GM alliance,” FO union leader Jean-Francois Kondratiuk said in a statement.
Both companies are struggling with flagging sales in Europe, and are considered burdened by over-capacity, since the eurozone debt crisis has brought back clouds of recession. In 2011 GM had to face nearly $750 million in European losses, while Peugeot, which sells two-thirds of its vehicles in Europe, saw sales drop 1.5% last year and its profit halved. GM is taking into consideration job cuts and even closing factories at Opel and Vauxhall, which sell together more than 1 million units each year.
Robert Peugeot declared that in the future the company will deal with the existing cooperation agreements with other manufacturers on “a case-by-case basis”.
“Concerning PSA, we will of course look with our partners at the cooperation agreements whether the alliance that we’ve just announced will have an effect, or even a positive effect,” he said.
PSA Peugeot Citroen and GM said on Wednesday February 29th that their global cooperation deal would slash costs for both and boost their competitiveness in Europe.