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Christopher Bruce2012-07-12 15:29:46

Peugeot-Citroën Plans to Close Aulnay Factory

The C3 production will be moved to Poissy and will be built with the 208

PSA PeugeotPeugeotPeugeotFrance, 1882 > present120 models
4048 photos
7 videos
-CitroënCitroënCitroënFrance, 1919 > present94 models
5546 photos
11 videos
says that it will have to close its factory in Aulnay-sous-Bois near Paris in 2014 indicating that that the French government's plan to save the factory have failed. It will also reduce production at its Rennes, France. 

"I am fully aware of the seriousness of today's announcements as well as of the shock and emotions that they will arouse in the company. The depth and persistence of the crisis impacting our business in Europe have now made this reorganization project indispensable in order to align our production capacity with foreseeable market trends," said PSA CEO Philippe Varin.

The decision comes from PSA having a €700 million loss for the first six months of the year.

The Aulnay factory employs 3,500 workers and 10,000 subcontractors. The factory builds the C3C3 Gen.2Citroën C3 Gen.2France, 2009 > 2016116 versions
166 photos
, and production will be moved from Aulnay to its Poissy factory that builds the 208208 Gen.1Peugeot 208 Gen.1France, 2012 > present109 versions
198 photos
3 videos
. Peugeot says that the Poissy factory has been working under capacity, and it will easily be able to pick up C3 production. 

The Rennes factory will lose 1,400 positions.

Peugeot's factories in general are running at 76% capacity. 

The French government is very upset about PSA's announcement.

"The state is going to look at the company's strategy and what should be demanded in the interests of its workers,” said Social Affairs Minister Marisol Touraine.

France Planning Changes to Save Domestic Auto Industry

Source: Automotive News Europe

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