Following in suit of MINI, Bentley and Renault, PSA will cut over 11,000 jobs this year, with the first redundancies at its European factories outside France. This is in addition to the loss of 2,700 jobs late last year and follows the announcement of losses of €343 million during 2008.
PSA's plants in Slovakia and the Czech Republic are thought to be the first affected. The prioritising of jobs in France has been aided by President Nicolas Sarkozy's announcement of a €3b loan to PSA to safeguard French employees. Sarkozy has also announced a similar loan to Renault, packages to help both companies' finance divisions, and loans to Renault Trucks and French supplier firms.
The European Commission, meanwhile, has approved a €1.7m package to help unemployed auto industry workers in the Castilla y Leon and Aragon regions of Spain. Over 1,080 workers at 12 firms have been affected in these impoverished areas, and unions have applied to the EU under a scheme which gives funding for retraining of individuals made redundant.
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