PSA Peugeot Citroen Plans to Reach Break-Even Level at France Plants by 2016 image

PSA Peugeot Citroen has set a breakeven target for its plants in France by 2016, relying on competitiveness talks with labor unions.

“The idea is to return to breakeven in all of our factories,” human resources director Philippe Dorge told reporters during a briefing in Paris today.

PSA is trying to reach labor concessions with the labor unions in France, while it struggle to stem losses in Europe, which have hit 5 billion euro in 2012. The French automaker’s restructuring plan includes cutting 10,000 jobs and closes a plant near Paris, in an attempt to get back to positive cash flow by late 2014.

Dorge also added that PSA Peugeot Citroen tries to boost average plant production capacity to 100% in 2016, which would mean working in two shifts 235 days a year. Last year production capacity was 75%. During the first six months of the year Peugeot’s sales in EU and EFTA dropped 13% to 716,739 vehicles, according to ACEA.

PSA Peugeot-Citroen said last month it plans to increase its 2008 small SUV production in France as the automaker received a higher-than-expected demand for the new vehicle. Peugeot plans to sell 200,000 2008 small SUV vehicles until 2015. 2008 is Peugeot’s first vehicle to be developed engineered simultaneously by employees based in China, Europe and Latina America.

Source: Autonews