France Planning Changes to Save Domestic Auto Industry

The French government plans to work on solutions to save the domestic auto market. Specifically, it wants to keep a PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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factory near Paris open.

The plan to reform the French auto industry is being spearheaded by French Finance Minister Pierre Moscovici and Prime Minister Jean-Marc Ayrault. The specifics of the plan have not yet been revealed but will be within the next month. It appears that part of the plan will involve reducing labor costs and making contracts less rigid. 

"We will have to take measures in the coming month. There will be a plan for the auto industry; we will not abandon the automobile industry. We have trust in PSA and we will find solutions that are both balanced and respectful of jobs," said Moscovici.

PSA had planned to close a factory in Aulnay-sous-Bois, which is near Paris. It employs 3,500 workers and 10,000 subcontractors. 

Source: Automotive News