The row between the French government and PSA Peugeot Citroen took another turn on Friday after the car maker’s chairman said criticism of its massive job cuts was creating a “dangerous” situation.
“We are ready to accept criticism, but there are limits,” Thierry Peugeot said in an interview with Le Figaro, after the company came under sustained fire from France’s new Socialist government over its plans to cut 8,000 French jobs.
“The attacks the company is currently facing have an immediate effect on [investor] perception. This is a dangerous situation,” Mr Peugeot said.
Asked if he feared a hostile takeover bid for the company after its shares fell 18pc following the job cuts announcement, Peugeot said: “Anything is possible. So we must act.”
Struggling with falling European sales, PSA, the biggest French car maker and second in Europe to Germany’s Volkswagen, announced last week it would cut 8,000 jobs and cease production at its historic Aulnay plant north of Paris.
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Afternoon Updates:
12:02 pm EDT, July 21st, 2012 — Spain spooks markets as Valencia requests aid from stricken state
12:04 pm EDT, July 21st, 2012 — Chancellor seen at risk of public sector borrowing overshoot
12:06 pm EDT, July 21st, 2012 — So, Euro-enthusiasts: still worried about Britain missing the train?
12:07 pm EDT, July 21st, 2012 — Tax revenues fill German state coffers
12:08 pm EDT, July 21st, 2012 — Crisis ends golden age for Italy’s banks
12:09 pm EDT, July 21st, 2012 — Dishonesty is the new greed on Wall Street
12:10 pm EDT, July 21st, 2012 — Treasury 5-Year Yields Fall To Record On Europe Crisis
12:11 pm EDT, July 21st, 2012 — European debt crisis hits Italy
Perhaps Hollande should do an “Obama” and do a hostile takeover of Peugeot. Isn’t that the final solution for any socialist – to control the means of production, therefore owning” the economy without pesky capitalists interfering with the 5 year plan. lol
Socialists to manufacturers: The beatings will continue until morale improves. Whaddayamean the donkey died!
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