French President Protesting PSA Plant Closure

French President Hollande is upset about PSA PeugeotPeugeotFrance, 1882 > present120 models
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plan to close the factory in Aulnay, France, and cut 8,000 jobs. 

"The plan in the current state is not acceptable, it won't be accepted," Hollande said.

PSA's plan is to close the Aulnay plant and cut jobs at the Rennes plant to cut labor costs and lower capacity. If their plan is successful, it will be France's first auto factory closure in 20 years. The layoffs would total 14,000 jobs. PSA CEO Philippe Varin says that he is willing to open the company's books to prove to the French government to prove that the layoffs are necessary. 

PSA's sales dropped 13% in the first half of the year, and Peugeot expects the European car industry to drop by 8% this year. 

France currently has 10% unemployment and the economy did not grow in the second quarter. 

Source: Automotive News Europe