In France. Peugeot-Citroen is laying off 10,000 of its workers:
PARIS – French carmaker PSA Peugeot-Citroen is cutting 10,000 jobs, or 7 percent of its European work force, and is imposing a hiring freeze as it tries to cut costs amid a sales slump in Europe.
Europe’s second largest automaker after Volkswagen AG said late Tuesday it plans to cut costs by 125 million euros ($158 million) in the second half of the year.
The company said it will cuts jobs in part by not replacing people who leave or retire. Peugeot currently employs 133,500 people in Europe.
The company is also canceling construction of a second assembly plant at its Trnava, Slovakia facility. Peugeot had budgeted 350 million euros ($444 million) for the plant, which was planned for a new model that will be launched in 2010. Assembly will now take place at existing facilities, saving 200 million euros ($254 million).
We’ve become accustomed to seeing these sorts of reports about the U. S. auto industry but, obviously, the problem isn’t ours alone. The total number of cars in circulation and total number produced have been rising for years:
Source: WorldWatch Institute
China’s domestic production of automobiles is growing fast, up 25% in just the past year and China plans on being a major player in the world’s automobile business (particularly in the auto parts business). As it does the rules will change. Again.
I wonder if there’s a saturation point in total units produced.