PSA-Government Tensions Ease

CEO Philippe Varin and French Prime Minister Jean-Marc Ayrault met on Monday and appear to have softened their rhetoric about PSA Peugeot Citroen's plan to shed as many as 8,000 employees in France.

Varin reiterates that the carmaker won't fire any workers and will try to find new jobs for those who leave voluntarily. He also pledges again that PSA will try to find another industrial use for the factory in Aulnay, France, it plans to close in 2014.

Ayrault says he is pleased by Varin's clear commitments to soften the blow of PSA's job cuts. The government previously called the company's plans unacceptable and urged it to scale back the restructuring.

Varin declared last week that intense criticism from the government and unions was undermining investor confidence in PSA.