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Around 1,000 workers are facing the axe due to output cuts caused by the mounting inventory of vehicles as the market demand is sliding, the source said. Workers would be paid a subsistence wage temporarily but are unsure how long the “paid leave” will last.
In September the joint venture automaker sold a total of 16,000 vehicles in the Chinese market, down 3% from one year earlier.
Globally, PSA Peugeot Citroen announced to cut production by at least 20 percent, and has slashed its operating margin forecasts from 3.5 to 1.3 percent.
Christian Streiff, chief executive of PSA Peugeot Citroen, told reporters that at the time the company would also temporarily halt some of its production in Brazil.
By Ally From: Gasgoo.com
Posted October 31st, 2008 by kellywang
