Peugeot in "difficult situation" - govt report

PARIS, Sept 11 (Reuters) - PSA Peugeot Citroen cannot rely solely on cost cutting to reduce its losses, and job cuts must not hurt its research and development capabilities, a government-commissioned report into the French car maker's financial situation concluded.

Emmanuel Sartorius, appointed by the government to examine Peugeot, also said in the report published on Tuesday that Peugeot should have considered its overall production capacity before deciding to close its Aulnay plant near Paris.

The car maker has said it plans to cut 8,000 French jobs, on top of some 3,500 unveiled last year, close its Aulnay plant near Paris and shrink another in Rennes, in western France as it wrestles with a tough European auto market.

"This study has shown that PSA is currently in a difficult situation, resulting both from economic and structural reasons," the report said. (Reporting by Gilles Guillaume; Writing by Caroline Jacobs; Editing by James Regan)