PSA Peugeot Citroen and reduces production away 650 employees

PSA Peugeot Citroen and reduces production away 650 employees

The PSA Peugeot Citroen has reduced vehicle production in Porto Real (RJ) by 28% and, on that account, 650 employees away from one of three shifts that operate at the factory. The reasons for this action were falls in exports to Argentina, the reduction of domestic sales and foreign exchange problems.

About 180 cars were cut from the daily schedule of the company, which since Monday, operates two shifts, producing 450 cars per day. The lay-off will last for two to five months. If there is no market reaction there, a new class will be given after the return of this group.

"We are doing everything to hold the staff and there are no plans to resign," a spokesman for the French company. Exempt employees, a total of 3000 working in the production area, will undergo training courses.

Currently, PSA Peugeot Citroen exports 40% of its production, nearly all for Argentina. Because of the crisis in that country, and the decision of the local government to reduce imports of vehicles by 27% this year, the automaker estimates losses of 20% to 30% in foreign sales.

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