The industrial earthquake of PSA in France

[Remundo]

PSA Peugeot Citroën cuts 8.000 jobs and closes the Aulnay plant:

PSA Peugeot Citroën announced Thursday the shutdown of production at its plant in Aulnay-sous-Bois (Seine-Saint-Denis) in 2014 and the removal of 8.000 jobs in France, provoking very strong reactions, Bernard Thibault (CGT) speaking of "earthquake" and the right of "surpassed warning level".

The day before, the Minister of Productive Recovery, Arnaud Montebourg, had said he feared "a shock for the nation".

The leading French carmaker has put forward losses in the first half and a sustained reduction of markets in Europe to justify these radical decisions in employment.

PSA plans "to stop production activities in Aulnay in 2014, which employs 3.000 people, the refocusing of production in the Paris region on Poissy and the revitalization of the Aulnay site, "said a press release.

PSA plans to offer positions to 1.500 internal employees and 1.500 employees in the Aulnay employment area "thanks to external reclassification actions".

The site of Rennes (Brittany) is also strongly affected by this restructuring plan with 1.400 posts deleted from a total of 5.600 employees, according to the release.

........

Research and development is affected with 1.400 job cuts. "The decline in R&D staff is extremely serious", according to Franck Don
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Source Boursorama

[sen-no-sen]

It was largely predictable!
In a recession, the sale of a new vehicle is not the priority of the citizens.
This kind of ads will be common in the months and years to come ...
Holland is considering + 10% growth in 5 years, I think rather to -8%.
As long as governments persist in a logic of growth and well we will see social disasters spread.

[Obamot]

I was just wondering who was going to do the trick Mebon, in the state, without growth ...

What was Holland's profession of faith already?

I will initiate with the large French companies a movement of relocation of their factories within the framework of a specific contract. For companies that relocate, I will institute a reimbursement of the public aid received. A distinction will be made between reinvested profits and those distributed to shareholders.

Hmm ... Will PSA have to pay back?

The conspiracy on employment by Éric Zémmour:
http://www.youtube.com/watch?v=oJ7mIA6R ... re=related

We'll have to follow that closely.

Anyway, Sen-No-Sen, with the low percentage of "green" votes ...

[Remundo]

Everyone will agree that this sad news is a political bomb.

However, not everyone will agree on the causes and consequences of this bomb.

Nevertheless, this bomb explodes in the figure of the middle classes of PSA, but also of its subcontractors and traders implanted around the factories, of the worker with the upper frame, as usual ...

In fact, it's not 8000 jobs that jump, but at least 2 times more.

And France, which never ceases to deindustrialise as a backdrop.

@+

[sen-no-sen]

Hmm ... Will PSA have to pay back?

If they pay back they lose even more, so they will lay off even more ...
With the changes related to the depletion of resources, manufacturers should rather start manufacturing vehicles consuming less than 2L / 100km and abandon the concept of cars over-equipped.

In any case there will be job losses in the car, however it is not a calamity if the government put in place measures to enter the 21 century for good, funding the modernization of rail large ladder and public transport in general.
Injecting billions to help automakers will not change the inevitability of future transformations.

[Leo Maximus]

PSA loses 200 million every month:

http://www.lepoint.fr/economie/dirigean ... 012_28.php

[Christophe]

-8% on the stock market this morning ...

PSA will be the first BIG victim of the French industry of the crisis which we have not finished to see the end?

http://www.youtube.com/watch?v=mLq7EcvRaf0

...and quick...

[chatelot16]

it's been predictable for years with stupid scrappage bonuses

the state subsidized to push to buy new cars, even foreign, because the French manufacturer did not make enough of them ... and could not invest to manufacture more since it knew well that it would not last

the mistake has been made and we see the consequence!

the car is not the best thing to make for the future

if we manufactured in France our machine tool, our appliances, our wind turbine and our solar panel ... the decline of activity of the automotive industry would go unnoticed

if peugeot wants to avoid the disaster it must make the car that we need: durable and easy to maintain ... not necessarily without electronics, but with electronics well-shared in small subassembly cheap easy to replace

of course, if they make more durable cars they will sell less often ... but if these cars are more durable they will sell worldwide ... unlike the current model too complicated

[Remundo]

Indeed Chatelot,

Since 10 years, it is estimated that about 800 000 industrial jobs were destroyed in France.

According to the current PS Government: 750 000 since 10 years
According to Challenge: 100 000 in 3 years

But Jean Marc and Arnaud are on the spot!

[Ahmed]

Chatelot16, you write:

Of course, if they make more durable cars, they will sell less often ... but if these cars are actually more durable they will sell around the world ... unlike the current models too complicated.

Interesting school case taking the opposite of planned obsolescence!
Unfortunately for the beauty of the reasoning, the latter is not an absurd whim but the application of internal constraints to the system.
Apart from a very specific niche, a quality product, therefore sustainable would not fulfill its purpose * which is to produce value, and the geographic extension of the sale would face a response of equivalent products that would make it impossible, while reducing overall profitability ... which would lead very quickly to a return to square one.

Industries involve huge down payments and are very sensitive to cyclical variations due to their low profitability apart from a monopoly situation, various agreements or "tricks" (tax havens, relocation, etc.).
By the progressive exclusion of the wage bill, which has been redirected towards the tertiary sector, dependence on "low cost" products which serve to offset the effects of the reduction in truly productive activities is accentuated.
Like the scrap premium, this is just an infusion ...


* Unless it is sold very expensive (the price can play as an incentive factor, as a discriminating element) to a necessarily restricted clientele, which is not your hypothesis ...