Peugeot to make cuts

Peugeot to make cuts

PARIS - Reuters
PSA Peugeot Citroen, the struggling French car maker preparing a new round of cuts likely to include a plant closure, said first-half deliveries tumbled 13 percent as Europe’s austerity drive hit demand.

Shares in Europe’s second-largest automaker fell on July 6 after it reported global sales declined to 1.62 million light vehicles in the first six months from 1.86 million in the year-earlier period.

“The Peugeot and Citroen brands’ traditionally strong markets, France, Spain and Italy, are in profound crisis,” the company said, referring to a plunge in demand in markets where government’s are battling to rein in their deficitsç. European sales dropped 15 percent, it said.

Paris-based Peugeot is preparing to unveil cuts expected to include thousands of job losses and closure of its Aulnay plant near Paris.