PSA/Peugeot-Citroen will be closing its Aulnay plant so it is now raising its full-year savings target and freeing capacity at a factory near Paris, according to union officials. Senior Force Ouvriere union official Jean-Francois Kondratiuk said last Thursday that workers' representatives were informed by CEO Philippe Varin that the automaker’s goal to cut 1 billion euros ($1.25 billion) "will not be enough."
Kondriatiuk said that there will be new cost-cutting measures to be presented at works councils very soon. In addition, PSA is briefing workers on plans to cut production of the Peugeot 208 small car at Poissy, west of Paris, by at least one third. This action is being taken to prepare for the closure of PSA's factory in the northern Paris suburb of Aulnay-sous-Bois.
According to this plan, PSA will add to the 208 output at its factories in Mulhouse, eastern France and Trnava, Slovakia. Unions think that this will permit Poissy to boost production of the equivalent Citroen C3 model presently being built at Aulnay. Jean-Pierre Mercier of PSA's main CGT union said that by cutting the 208 output at Poissy, the C3 volume could be increased.