PSA set to announce whether to close Aulnay-sous-Bois factory on July 25

Article by Anita Panait, on June 20, 2012

PSA will likely announce the closure of its Aulnay-sous-Bois plant in France on July 25, 2012, which is when it’s slated to reveal its results, according to town mayor Gerard Segura. During a roundtable organized by French Industry Minister Arnaud Montebourg, Segura said that they are concerned that PSA will reveal its intention to close the factory near the end of July, when the company publishes its results.

According to a document leaked last June, PSA executives had made plans to shut down the Aulnay plant, which produces the Citroen C3 subcompact that is bound to be replaced in 2014. PSA chief executive Philippe Varin had admitted that the site’s future was in doubt beyond 2014 despite saying that they had yet to decide on its prospect.

According to Segura, Montebourg planned to hold a discussion with Varin regarding the future of the site, which employs around 3,600 people. PSA is implementing a massive restructuring of its operations after incurring around EUR3.4 billion in net debt at the end of 2011. The company hopes to save money with the move. The company’s restructuring program calls for around 1,900 voluntary job losses in France, and a total of 6,000 job cuts in Europe.

The company’s cash-raising program included selling its 48-year-old headquarters building as well as issuing of EUR1 billion in shares at a 42 percent discount. PSA also forged a partnership deal with General Motors Co. aimed at cutting purchasing costs and development spending as the company tries to revitalize its European operations. The deal entailed GM buying a 7 percent stake in PSA.

Topics: psa

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