Peugeot Citroen closes Factory

[NormanH]

PSA Peugeot Citroen is closing its factory at Aulnay with the loss of 8000 jobs.

http://www.guardian.co.uk/business/2012/jul/12/eurozone-crisis-peugeot-france

http://www.lefigaro.fr/societes/2012/07/12/20005-20120712ARTFIG00243-pourquoi-psa-connait-une-telle-descente-aux-enfers.php

[idun]

The jobs are to be lost at at least a couple of factories, including Rennes as well as Aulnay. There was a lot about it on french news tonight, leaving the avalanche at Mont Maudit something of a follow up bit of news, in spite of so many deaths.

What a worry for so many people.

[just john]

Needs of the business, at least PSA are awake even if France isn't; losing sales in southern europe, booming in China, new executive  Citroen-ds9-caught-undisguised saloon being built only in China, likewise a new Peugeot 4x4 to compete at X5 level,

[Val_2]

We have bought three Citroën vehicles since 2000 and were pleased with the service, price and after sales for the first two, but the last one bought in 2011 resulted in a lot of of stress,angry insurers refusing to deal with them and to be honest the prices now they charge for new vehicles is ridiculous,so I went elsewhere and to a different manufacturer and got a better deal. Our local concessionaire that I mention above has a terrible reputation for after sales assistance and we found that out, wouldn't touch another one now or them with a bargepole. If they cut down on the gizmos in these vehicles, made them cheaper again, people would buy them so they are a victim of the current downturn in spending.

[Russethouse]

Apart from a break when we had a Renault Espace, we have had Citroens for over 30 years. They have never been problematic, I loved the BX and in total I think we had 3, at present I'm driving a Citroen C3 Picasso which is fine, but you are right Val, we bought it as a 2 year old for half it's new price, which it just isn't worth.

We may to change to a C4 in the future, but I really regret giving up our Citroen Zsara Picasso to our son as I think it was a great value car

[woolybanana]

Government interference in Peugeot is not likely to be any more than a sticking plaster. Maintaining jobs they do not need can never save the company.

[Sprogster]

One of the problems Peugot/Citroen have is they are too small compared to any other mass car manafacturer having failed to merge with any other companies, so struggle to fund totally new products at the same scale of other car companies like the VW Group, which consists also of Skoda, Seat, Audi, Porsche, Bentley Lamborgini and Bugatti. Renault have merged with Nissan and that enables them to share development costs.  So new models like the Peugot 208 is more of a reskin sharing a lot of the mechanicals of its predecessor the 207.

Also the French car manafacturers are finding that they cannot afford to compete with the customer financing deals offered by VW and VW are as a result eroding Peugot/Citroen and Renaults French market share dramatically. VW can raise money on the money markets at 2%, whereas the French car companies are having to pay 6%, as seen as higher risk by investors.

Last but not least the French car manufacturers sit firmly at the bottom of the JD Power reliability rankings.