Car manufacturer PSA Peugeot-Citroën has announced a reorganisation plan implying 8,000 job cuts in France. This will include the closure of the plant of Aulnay-sous-Bois (3,000 employees) and 1,400 job cuts in the plant of Rennes (Ile-et-Vilaine). It is also clear that all PSA units will be affected: the production plant of Poissy (Yvelines, 702 job cuts), the R&D site of Velizy (Yvelines, 684 job cuts), Sochaux (Doubs, 684), Paris (317), Mulhouse (Haut-Rhin, 273), the service activities by Poissy (Yveline, 192) and 13 other sites with less than 100 job cuts. The timelines for the restructuring differ between different locations.
PSA Peugeot-Citroën states that the restructuring is necessary due to deteriorating demand of sales in Southern Europe in particular. This restructuring is reported to be a major challenge for the new government and the new ministry of "production recovery". French president François Hollande stated on the 14th of July that the restructuring plan was "unacceptable". Arnaud Montebourg, the ministry of the production recovery, has denounced PSA's strategy and shareholders. Following this, the government has presented a programme for the automotive sector on July 25th, including financial help for subcontractors and support for the production of "green" cars.
Updated, 11-10-2014: France applied for support from the EGF following the dismissal of 6,120 workers at PSA during the reference period from 1 October 2013 to 31 January 2014. The European Commission has proposed to provide France with €12.7 million from the European Globalisation Adjustment Fund (EGF) to help 2,357 workers made redundant to find new jobs.
The redundancies mainly concern the Aulnay plant (Île-de-France), to be closed, and the Rennes plant (Brittany). The proposal now goes to the European Parliament and the EU's Council of Ministers for approval. The EGF measures are in addition to wide-ranging programmes carried out by PSA in the affected regions as part of its statutory obligations following mass redundancies. The total estimated cost of the package is €21.1 million, of which the EGF would provide 60%.