July 10, 2013 / 8:47 AM / in 5 years

CORRECTED-Faurecia unveils plant cuts on car production drop

(Corrects paragraph 2 to show Evreux to begin winding down by year-end, not to stop production by that date)

PARIS, July 10 (Reuters) - French auto parts maker Faurecia said it will end production of acoustic components and plastic bumpers at two plants in western France in response to falling vehicle demand.

The acoustic parts factory employing 96 workers in Evreux, Normandy will begin winding down at the end of the year, Faurecia said in a statement on Wednesday.

A further 34 jobs will be cut as bumper production ends in Bains-sur-Oust.

Faurecia said the cuts reflected declining car production at parent company PSA Peugeot Citroen and its other automotive clients.

Some of the Evreux production for the Peugeot 508 and Citroen C5 assembly lines in nearby Rennes will be transferred to Bains-sur-Oust, starting in late 2013, Faurecia said.

Further cuts may follow from the 416-strong workforce at Bains-sur-Oust as dashboard and door panel production are reorganised in turn, the company said.

Faurecia, 57 percent owned by Peugeot, said it aimed to maintain at least 50 of the Evreux staff as it creates a new venture on the site making cycle parts for the IXOW brand with investment partner Terranere SAS.

Faurecia did not disclose details of the venture, which aims to begin production at the end of 2013 and rehire other workers from the discontinued plant as the workforce increases to 180 by the end of 2016.

French daily Les Echos earlier reported that Faurecia would sell the Evreux site as part of the restructuring plan. (Reporting by Laurence Frost; Editing by James Regan)

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