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Plant Closing Could Cut PSA Costs by €108 Million
PSA Peugeot Citroen will reap annual cost savings of €108 million by closing its underutilized assembly plant in Aulnay, France, Le Figaro reports, citing company documents.
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PSA Peugeot Citroen will reap annual cost savings of €108 million by closing its underutilized assembly plant in Aulnay, France, Le Figaro reports, citing company documents.
The Paris-based daily says PSA told its staff that its latest restructuring moves would reduce fixed manufacturing costs by as much as €250 per car at an unspecified number of factories. Those measures include shuttering the Aulnay plant in 2014, reducing capacity at a second assembly facility and eliminating as many as 8,000 jobs in France.
CEO Philippe Varin tells Le Monde he would not be surprised if other European automakers follow PSA's lead in shrinking European capacity. Varin adds that the company is in advanced talks about a project to restore 600 jobs in Aulnay. PSA promised the French government it would seek a new industrial use for the site.
Separately, French Industry Minister Arnaud Montebourg declares he will summon members of the Peugeot family, whose 25.3% stake makes it the carmaker's biggest shareholder. Montebourg says he intends ask family members why PSA continued to pay dividends even as the company's financial condition worsened.
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