PSA Peugeot Citroen has announced 8,000 job cuts and the closure of an assembly plant as it is facing losses in the move which will accelerate a wave of streamlining in Western Europe, news reports said.
The French automobile company said the Aulnay plant near Paris which employs more than 3,000 workers will stop in 2014.
The plant will be shut as part of its aims to reorganize the Peugeot’s under-used domestic production capacity.
It will also be the first car plant to halt production in France for 20 years, which will pose a challenge to the new Socialist President Francois Hollande’s objective of reviving the industrial production.
The government also said it will present a plan to support the car industry on July 25 and will also make sure that Peugeot finds an alternative solution for all the workers who lose their jobs at Aulnay.
The global car company also said it would post a net loss in the first half and a 700 million euro operating loss for the core car-making unit.
The executives of Peugeot had already outlined plans to close Aulnay in the document leaked to unions in June 2011. Peugeot said it plans to convert the Aulnay site for other activities and seek new positions within the group for around half of its workforce.
PSA Peugeot Citroen is a French multinational manufacturer of automobiles and motorcycles sold under the Peugeot and Citroen marques. It is the second-largest Europe-based automobile company and the eighth largest in the world measured by 2010 unit production.