In the wake of a withering downturn in auto sales across the globe, Peugeot-maker PSA Group of France and its Chinese partner Dongfeng Group had agreed to shut down two of their four assembly plants and to trim thousands of jobs in China, an internal document seen by a press agency reporter had revealed on Friday, the 9th of August 2019.
Besides, while French carmaker PSA alongside Dongfeng had been scuffling to grapple with their growing losses over the recent past, a fate equally shared by almost every automaker except Germany’s Volkswagen, analysts had been quoted saying that latest attempt of PSA and Dongfeng to halve their workforces in China alongside a calling off of two of their shared assembly plants was largely aimed at curbing losses after the world’s largest auto market, China, ran out of fuel amid a terrible trade affair with United States.
On top of that, according to the PSA-Dongfeng document seen by a press agency reporter, the multinational carmaker’s JV, headquartered at Wuhan in Central China had been preparing to halve its workforce to 4,000, while the French-Chinese automotive JV of PSA and Dongfeng would shut down one of their four assembly plants and sell another, as it was agreed at a meet of PSA Boss Carlos Tavares and Dongfeng Chair Zhu Yanfeng, internal company documents revealed.
Nonetheless, both of the carmakers had declined to comment over the subject-matter while being asked, but a PSA spokesman said on Friday (August 9th) in terms of anonymity as the source was not authorized to speak about the issue on public, “We are working with our partners to improve the overall performance of our business in China in all its dimensions,” while another PSA insider directly briefed over the issue said, “We’re just a whisker away from having to withdraw from China. It really is that serious. ”