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PSA Peugeot Citroen sales slump

Friday, Jul 06, 2012 - 01:21

July 6 - The French carmaker looks set to cut thousands of jobs as economic turmoil in its core European markets hits sales. Joanne Nicholson reports

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It's a major car brand in France. But it's struggling. PSA Peugeot Citroen has posted a huge drop in sales. Global sales fell to 1.62 milion in the first half. That's down from 1.86 million in the same period last year. The company, which is Europe's second biggest carmaker, says their traditionally strong markets are France, Spain and Italy. But they are all caught in the stranglehold of the euro zone crisis and that's being reflected in Peugeot's deliveries. Sales in the region have plunged by 15 percent. So now staff at the Paris based firm are waiting to hear if jobs will be cut. The chief executive, Philippe Varin is set to brief workers next week. It's expected thousands of jobs will go, and the Aulnay plant near Paris is likely to close. Peugeot already announced 6,000 jobs were to go, in November after reporting full year losses. It's part of the company's plan to save a billion euros. The company has denied a report in a French newsweekly suggesting it was looking for an emergency loan from the government. Joanne Nicholson, Reuters

PSA Peugeot Citroen sales slump

Friday, Jul 06, 2012 - 01:21

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