Hollande to Fight Auto Job Cuts in France

French President-elect Francois Hollande vows to impose financial penalties on profitable companies that aim to boost their share price by dismissing workers.

Hollande was elected last weekend after promising to temper the country's austerity plan, which has helped drive the unemployment rate to nearly 10%. He contends the dismal job market is choking France's chances of economic recovery.

Hollande adviser Michel Sapin tells France Inter radio that his boss will "arm wrestle" General Motors Co. management over possible job losses at a French transmission plant the company plans to sell. Sapin notes that the factory's 1,000 workers granted the company concessions in 2010 in exchange for job guarantees.

GM said earlier this week that it had hired financial advisers to find a buyer who would continue to operate the Strasbourg facility with its existing workforce.

Hollande also is expected to clash with PSA Peugeot Citroen, whose goal to cut costs by €1 billion this year includes shedding 6,000 jobs in Europe. PSA has warned that if its sales don't rebound, it may be forced to downsize high-cost operations in France.

It is unclear whether Hollande has legal grounds to carry out his pledge. France's high court ruled last week that healthy companies can fire workers under some circumstances.

Analysts say government intervention to prevent plant closings and preserve jobs is the main reason that Europe's carmakers have not eliminated the excess capacity that is undermining their profitability.