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26/10/2011 | Paris – 26 October 2011

European Works Council Meeting of 26 October 2011

PSA Peugeot Citroën executive management convened today a special meeting of the European Works Council in order to present the improvement plans aimed at restoring the Automotive Division's competitiveness and profitability.

Together, the proposed measures are expected to reduce costs by €800 million in 2012.

They are designed to streamline the Group’s organisational structures or to adjust project budgets, particularly in sales, marketing, information technology and research & development. They will also enable the Group to leverage the benefits of the relationships forged with its strategic suppliers.

These organisational measures could result in the reduction of 2,500 jobs in Europe in 2012. The Group will deploy support programmes in each country, in line with the retraining, transfer and outplacement provisions of the Human Resources Planning and Development agreement signed with employee representatives in March 2010. In particular, internal posts lost through natural attrition will not be replaced and the Group will terminate outsourcing contracts with external companies, whose positions could be in part filled by Group employees.

In the manufacturing operations, the productivity and organisational measures will result in the reduction of an estimated 1,000 jobs in 2012.

Preliminary studies will be conducted for a plan to restructure the scooter manufacturing base.

In each country, employee representative bodies will be informed and consulted about the proposed measures. As always, the Group will strive to find a solution for each employee, taking a responsible approach in line with its values.

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