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PSA Peugeot-Citroen sells research center to cut costs

Published by on May 23, 2013 in News Leave a comment

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It’s not a secret anymore that PSA Peugeot-Citroen is not going through the best time of their life. Trying to survive in this rough economic context, the French group is cutting costs as much possible. And one of the most recent decisions took by the management is to shut down and sell several properties considered not to be so important to the companies’ future. And this first one to take the hit will be the research and development center in Meudon-la-Foret, near Paris. According to AutoNews, operations will soon be shut down here and the property will go on sale, in order to keep up with Peugeot and Citroen’s expenses.

“We are consolidating our industrial sites so it’s normal to bring our activities closer together when it makes sense,” explained Cecile Damide, spokeswoman for PSA. However, the good news is that no employees working in this facility will lose their jobs, most of them being relocated to the research center in Velizy (also in the suburbs of Paris), while others will go to the group’s factory in Poissy. Unfortunately, there are also bad news for PSA’s employees, since the group’s officials have announced that 2,500 employees working in production will lose their jobs by the end of 2014, when the Aulnay plant will be shut down. PSA has already signed an agreement with the workers union, who agreed closing down the factory where the Citroen C3 is being built.

Like we said, selling the Meudon-la-Foret property is only the first step the group takes in this direction and PSA hopes to get around 200 million Euros this year alone from selling several properties. Further two billion Euros will be saved by cutting down the workforce (17% will be laid off by the end of next year) and reducing production in some facilities. In 2012, PSA Peugeot-Citroen recorded an operational loss of 576 million Euros ($742 million) and last month the French announced a drop of 6.5 percent in revenue in the first quarter of 2013.

Source: AutoNews

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