Peugeot seeks to cut 4,800 jobs

Peugeot Citroen has said it is seeking 4,800 voluntary job cuts in France to reduce costs.

Peugeot Citroen has said it is seeking 4,800 voluntary job cuts in France to reduce costs.

The carmaker today reported first quarter sales up 6.5 per cent at €14.87 billion. The sales figure from Europe's second biggest car group was above the €14.24 billion average forecast in a Reuters poll of nine analysts.

It said its market share in Europe was 14.3 per cent against 14.4 per cent a year ago and worldwide vehicle sales rose 0.5 per cent in number of units. Its automotive sales were up 5.6 per cent to 11.595 billion.

Breaking a taboo against announcing job losses during French presidential elections, PSA said it was calling a works council meeting on May 9th to put a voluntary redundancy deal in place.

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New chief executive Christian Streiff, who has said that the group was oversized, is set to give the first outlines of his strategy at a shareholders' meeting on May 23th.

The group had 211,700 staff world wide on December 31st, 121,900 of them in France. In France, 96,100 people work for the auto division - the rest in transport or finance.

"These voluntary reductions are only for the auto division, with the exception of plant workers and some specific functions," a spokesman said, stressing there would be no lay-offs.