PSA to close r&d site in Meudon to cut costs

Article by Anita Panait, on May 23, 2013

PSA/Peugeot-Citroen will close its research and development facility in the Paris suburb of Meudon-la-Foret as part of its cost-cutting program, according to spokeswoman Cecile Damide.  The closure, however, will involve no job cuts as most of them will be transferred to PSA’s main r&d facility nearby at Velizy.

Some of them will be offered work at PSA’s Poissy site while 21 workers will be transferred to a spare parts logistics center in Vesoul, France. Damide said PSA is consolidating its industrial sites to bring their “activities closer together when it makes sense." PSA’s Meudon site is responsible for r&d, human resources and quality control. According to an internal document seen by Reuters, PSA is planning to sell its Meudon site.

The French carmaker disclosed earlier this year that it would dispose properties worth EUR200 million ($257 million), in addition to EUR2 billion already disposed in 2012. The carmaker targets to cut its French workforce by 17 percent by the end of 2014. 

PSA reached an agreement last week with a striking union to close its Aulnay site in 2014 when it replaces its Citroen C3 subcompact model that the plant builds. PSA’s Aulnay site employs around 2,500 people. The carmaker posted a EUR576-million operating loss in 2012 and logged a 6.5-percent drop in revenues in the first quarter of 2013 to EUR13 billion. PSA expects the vehicle market in Europe to shrink by 5 percent in 2013, its sixth annual decline in a row.

Topics: psa

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