French Court Orders PSA to Suspend Restructuring

PSA Peugeot Citroen must postpone its plans to eliminate 8,000 jobs in France this year until parts affiliate Faurecia SA informs its employees of how those cuts will affect them, the Paris Appeals Court has ruled.

Faurecia SA, which is 57%-owned by PSA, said in November that its own restructuring would cut 3,000 jobs in France or about 8% of the supplier's workforce there by year-end.

A PSA assembly plant in Aulnay that is slated to close next year is operating at less than half its normal capacity as protests by the militant CGT union impede operations. The more moderate SIA union says its goal is to "negotiate, not block."

Separately, walkouts curtailed output at all six Renault SA assembly plants in France on Tuesday. Workers are protesting the company's goal of eliminating 7,500 jobs over the next four years. Renault has threatened to close two French factories if workers don't make concessions.