French president says Peugeot layoffs are unacceptable

[madville]

Source: LA Times

PARIS — President Francois Hollande on Saturday denounced a plan by carmaker PSA Peugeot-Citroen to cut 8,000 jobs as unacceptable and said it must be renegotiated.

The struggling French carmaker announced the cutbacks Thursday, along with its intention to close a major factory north of Paris. Employees staged a protest the same day, and unions are calling for more.

In his Bastille Day interview on French television, Hollande said the plan was a "shock" for workers, their families and their communities.

He told two interviewers from the major television networks TF1 and France-2 that the "plan is not acceptable as it stands and therefore it will not be accepted."

More at link

Read more: http://www.latimes.com/business/la-fi-france-peugeot-citroen-20120715,0,1554547.story

[gregoire]

1. Now that is a real leader

Instead of allowing GM to illegally fire workers for no reason, our leader should have required them to hire more.

[FarCenter]

2. The workers have already downed tools.

So all Peugeot has to do is stop paying them.

[JDPriestly]

3. Don't worry. They will make a deal so that the cost of the

equivalent of unemployment insurance falls on Peugeot. Peugeot made lots of money thanks to the contributions of its employees for many years. Now it should help its employees through any transition, and if possible firings should be avoided.

Essentially, the company is going on strike against the workers. And if there isn't enough demand for the product and that is the cause of the problem, then work needs to be done on that end.

[FarCenter]

5. The shape of the assistance is in transitional aid and unemployment

The plant will close. There is way too much auto manufacturing capacity in Western Europe.

Europeans cannot afford cars, because they can't pay OPEC for the oil.

[dipsydoodle]

8. Not that

Price of fuel here is what you would refer to as about $8 / US gallon. That has a knock effect of overall demand for cars.

[Rosa Luxemburg]

4. The Peugot bosses should hand over their big salaries and bonuses

the company needs to do more work in selling and not creaming off the profits.

[dipsydoodle]

7. The selling side is easier said than done.

The 2008 financial collapse also collapsed the value of second hand cars the majority of which were end of contract leases. That situation has never fulyy recovered. The reduced values had a knock on effect as trade ins. The manufacturer's finance schemes use unchanged underwriting criteria based on ability and willingness to pay making many fiance proof. As such people are happy to keep cars for longer - so much for new cars sales.

As a complete aside from that some of our consumer protection laws here in the UK had the odd side effect of making some purchase ageements for cars too risky to use.

[dipsydoodle]

6. His only option will be to either bail them out

or partially nationalise them. If he bails them then I would think Renault Nissan would expect the same. Hollande is already in trouble with his election promises having been told he cannot possibly keep his promise of no reductions in their public sector - that from his own audit office.

The simple fact of the matter is reduced demand for new cars over here in Europe.

[HIlton Brackett]

9. French Company?

I seam to recall the peugeot company was sold to Iranian interests like 15-20 years ago maybe things have changed since then.

[HIlton Brackett]

10. Here is the latest

http://www.exportlawblog.com/archives/4063

The US Gov. Own 27% of GM

GM bought 7% of Peugeot

Iran Khodro Company is the leading Iranian vehicle manufacturer, put together a lot of Peugeot's

Now U.S. sanctions are bringing down the whole house of cards

[Liberal_in_LA]

11. Interesting. Thanks.

[may3rd]

12. Iran auto production plunges by a third ( things are tough all over in the auto world,oui ? )

Iran's auto production fell by more than 36 percent over the past three months, the industry ministry was quoted by ISNA news agency as saying on Saturday, citing "lack of money."
Production fell to about 241,500 vehicles in the first quarter of the Iranian year (March 21 to June 20), according to the figures.
?1342361804


The decline coincides with the halt of parts deliveries to Iran by French manufacturer Peugeot because of Western sanctions.
Peugeot is a partner of the main Iranian auto maker Iran Khodro (IKCO), .....

snip
http://www.france24.com/en/20120714-iran-auto-production-plunges-third


Why don't the French bail out the auto giant ?

Maybe they can export to Iran when their industry crashes.

or

they can lift the sanctions and save jobs....