Will Arnaud and French Unions kill automaker Peugeot ??
Arnaud Montebourg is the freshly appointed Ministre du Redressement Productif. Really, he is in charge of preventing lay-off and factory closures in France. A tough job indeed. He is a smiling, vociferous, camera loving guy.
French car-maker PSA just announced the closure of their 8,000 employees plant north of Paris. This is the first real test for Arnaud. For starters, he attacked publicly the Peugeot family ethic, board members and the company as a whole. May be Arnaud has not realized he is a Minister with responsibilities and no longer a member of the opposition…
W’ ll see if he changes his tune in the future.
In the meantime, French Unions have declared "war on Peugeot"…
The banner above clearly shows that profits suck jobs - Marxist Union logic at its best.
Arnaud Montebourg just announced an incentive plan to boost hybrid and electric car sales in France. The plan is a band-aid that will do little to help Peugeot’s survival. It is not addressing the fundamental issue: HOW TO MAKE PEUGEOT COMPETITIVE WORLDWIDE.
Peugeot needs to be able to run its business as it sees fit.
Sergio Marchionne, head of Chrysler and FIAT declared that Europe needs to close up to 12 plants to control overcapacity and for the local car industry to get healthy. Ford in the US had to layoff half its workforce to restructure. GM closed 13 of its 47 US based factories. US Unions went along.
The FIAT figures below show the extent of the problem for European legacy manufacturers who have not cut their overcapacity yet:
 Peugeot market capitalization is around €2 Billion. Volkswagen is 30 times larger and stands at €60 Billion. Lot’s can be said about Peugeot strategy and management, concentration on European market, slow start in China, product offering… But, right now they claim to be burning €200Million cash a month. So there is not a lot of time left before they go bust or get acquired by… the French government - who else??
Let’s hope Mr Hollande will have the guts to address his most pressing issue: LE CODE DU TRAVAIL ! (aka revamping outdated labor laws)