By on July 2, 2012

Bloomberg is reporting that Peugeot may expand their job cuts in France, with the potential for 10 percent of their domestic warehouse to be cut.

Christian Lafaye, the head of Peugeot’s second largest union, told Bloomberg that

“They will raise the job cuts target in France alone to 8,000-10,000″.

Peugeot wouldn’t comment on the figure, but given the way things are shaking out in Europe, it’s plausible. In Novemeber, 2011, Peugeot was targeting job cuts of around 6,000. Declining car registrations in Europe (with Italy down by nearly 25 percent according to the latest available data) amid great uneconomic uncertainty means that the auto industry is in a precarious position on the continent; they are dealing with a problem of overcapacity and a shrinking market at the same time.


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15 Comments on “Peugeot May Cut 10,000 Jobs In France...”

  • avatar

    Bring them here!

  • avatar
    Adrian Roman

    Bring who, the workers or the Peugeots ?

  • avatar

    Bring both the workers and the Peugeots here! Also bring their food and wine.

  • avatar
    Augie the Argie

    Please bring the 208, 308 and especially the RCZ coupe with Turbodiesel technology to North America through the recent GM agreement. That would solve some of the overcapacity and personnel issues back home.

  • avatar

    The unemployment rate in France is right at 10%. In the U.S. it’s about 8%. 10,000 more French are going to be out of work. Like the U.S. they may get unemployment compensation or union benefits for a while, but where are they going to find other work? And anything with the same income? There is a personal side to this story. The workers can’t be brought here. That takes work away from Americans that are desperate for well- paying jobs. Their visa would say “no work”. No Japanese were brought over to fill the transplant factories…and, besides, they’re FRENCH. They don’t want to leave their country. Would you want to leave yours? We have the same problem here. Every time I read something like this I get ill.
    These aren’t numbers, these are peoples lives; Somebody had a nice house, but they couldn’t keep it because the compensation wasn’t enough to cover the mortgage; hello rental. You had a job paying $50,000 and now you were lucky to find one paying $20,000. Ladies and Gentlemen: This is serious.

  • avatar

    happened before and will happen again. But I believe the longer term picture for the French auto industry is continuing decline. The French never learn from their mistakes – they truly don’t – they tend to cower from them. They are hopeless capitalists. They have made no effort to re-establish themselves in NA. In the era of increasing globalization and competitiveness. Instead they’ve opted along for shutterism. A delusion or kind of isolation of superiority for the fear of cultural preservation. It is a ligature – they are choking themselves.

    • 0 avatar

      I heard this being said 30 years ago – yet somehow, Renault, Peugeot and Citroen are still alive…

      • 0 avatar

        Citroen most certainly did not survive; The fact that the PSA group chooses to put the dual chevron on certain of its undistinguished cars does not change the fact that the independent carmaker Citroen went belly-up in the seventies.

  • avatar

    Is being unemployed all that bad in France? They have a welfare state on steroids. And I’m sure Peugeot will have to pay very handsome severance benefits to everyone who is laid off. In Europe, everyone lives comfortably until the system collapses.

  • avatar

    I disagree with the comment: “They are hopeless capitalists.”

    France has a mixed economy, with some industries managed by the state, and other industries left to fend for themselves in the free market. The French car business is very much part of la grande patrie, so it benefits from large dollops of state aid. Less needy industries, such as makers of luxury goods and processed foods (to name but a few examples), thrive without assistance.

    It’s the same story in most countries. One of my Japanese friends has a secure job in a government ministry that builds useless animal barriers near highways. She’s bored to tears.

    • 0 avatar

      No, it’s not the “same story”. Nations differ.
      Less productive workers (whether French auto workers or Japanese civil servants) exist in all nations. However, their percentages differ substantially.

      Nations like Germany, France and Italy have significant differences in how workers are trained and expected to work. Until recently, you couldn’t fire an Italian short of paying out near 6 figures Euro fines and fees.

      In Greece, it’s still illegal to sell coffee in bookstores. (Not only does this make the bookstore customer service abysmal, a Greek STATE EMPLOYEE exists whose job it is to enforce such regulations).

      For those who feel sorry for Europeans, feel free to help them out by transferring your investments and 401Ks to French, Italian or Greek bonds.

  • avatar

    Don’t forget other benefits of “capitalistic” western Europe:

  • avatar

    I am European but…don’t forget other benefits of “capitalistic” western Europe:
    – Paid Holiday – minimum 30 days/y
    – A lot of companies/state agencies pay holiday $ as well
    – 35-40 hours working week
    – much too relaxed working conditions
    – in Germany and Holland you can just call your boss if you “feel” sick and stay home 3 days (fully paid) without even seeng a doctor
    – so called “burnout” holidays…

    • 0 avatar

      In the US where I live, the company I work for merged sick days + vacation days together. Use them as you want and use them wisely.
      That way, if you “feel” sick you have used a day off. You now have 1 less day of vacation. Run out of days before the end of year and need a day because of sickness = don’t get paid. The company also lets you roll up to 5 days (40 hours) not used in the current year and lets you use them until March or April of the next year.

      I forgot this. We take hours off, not days. If I need to leave work a couple of hours early or have to show up late , I put in for 2 hours.

  • avatar

    Nations differ? Really?

    My Japanese friend is quite hard-working, as are the members of my family who live in Holland and Germany. However, they are engaged in unproductive activities that actually subtract from the national worth.

    Meanwhile, I have French friends who can only find jobs as “contractors.” Since they’re in competition with Romanian and Polish migrants, they work hard and receive zero benefits. No security, no vacation, no retirement pay. Zilch.

    To say that capitalism is a a North European phenomenon is ridiculous. Banking and insurance originated in Italy, Belgium developed manufacturing (yes, ahead of England), and the word “entrepreneur” was coined by a French economist.

    The idea that Anglo Saxons have a god-given gift for business has led to disasters such as British Leyland and Opel.

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