Peugeot-Citroën Plans to Close Aulnay Factory

PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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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 C3Citroën C3 Gen.2France, 2009 > 2016111 versions
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, and production will be moved from Aulnay to its Poissy factory that builds the 208Peugeot 208 Gen.1France, 2012 > present103 versions
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. 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

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Source: Automotive News Europe