Peugeot Ordered to Pause Restructuring as Workers Strike
PSA Peugeot Citroen was ordered by a court to pause its restructuring plans as auto workers across France went on strike to protest industrywide job cuts amid signs the decline in European car demand is accelerating, Bloomberg reported. Workers burned tires and blocked access to some Renault SA factories and protested outside a Peugeot plant in a Paris suburb that is set to close. A court in the French capital said separately that Peugeot can’t eliminate jobs until a parts supplier that it controls tells workers how they may be affected by the automaker’s reorganization. The two companies are struggling to convince French labor leaders to go along with plans to eliminate 18,700 positions, or roughly 17 percent of their workforces in the country, as Europe’s auto market plunges for a sixth straight year. Ford Motor Co. today said the outlook for the region deteriorated in the fourth quarter, forecasting a 2013 loss in Europe of $2 billion, up from an estimate of $1.5 billion. Read more.