PSA Peugeot Citroën to Take Desperate Measures to Sustain
Instability in the European automotive markets hit PSA Peugeot Citroën adversely. As a result of falling demand in Europe, its second largest auto manufacturer is set to reorganise its French production base. This would hit the markets further but this desperate measure would help PSA Peugeot Citroën to get a little stable since they have been witnessing a loss in their business since last year, which has further been increasing in 2012 as well. As a result, the group will be reporting a net loss in the first half of this year.
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As a major step to rectify the situation, the production at Aulnay will cease. The plant was dedicated to the production of Citroën C3, which would now be produced at the Poissy facility, that along with Aulnay specialises with small car production. Soon a reorganisation at the Rennes plant will also be seen. Both these measures will affect over 3000 employees but the company will take extensive measures to help these employees by either re-employing them within the group or help them with placement within the local employement group. The picture in European market is starting to look bleak and problems in this market might have an adverse affect in rest of the world. Crossing our fingers and hoping the best for this industry on the whole.
