Monday, October 17, 2016

PSA : a still fragile situation in spite of good results – The World

While the French car manufacturer present on Monday an estimate of its workforce by 2017, its sales in France and Europe are slowing down in recent months.

The plant PSA in Rennes (france) is in  particular covered by the plan of voluntary  departures.

Read also : PSA one step ahead of the law work by signing a new agreement with its unions

The plan includes more than 2,000 voluntary redundancies. If financially the situation has improved, the group is facing a slowdown in its sales, in France and in Europe.

  • A plan of voluntary departures for the fourth year in a row

Since 2013, the numbers of PSA – which includes the brands Peugeot, Citroën and DS –, were slashed to 17 000 people. Today, the company employs approximately 57 000 employees in its automotive branch in France. For 2017, the management of PSA aims to remove more than 2,000 posts. But no dismissal sec.

Read also : PSA account to remove more than 2,000 posts

In detail, this plan includes :

  • 1 025 voluntary departures not replaced. These employees will leave the company for a project professional to another employer, a leave of reclassification or professional transition. For 2016, the management hoped to 650 departures of this type ;
  • it also plans to 983 ” leave seniors “ in 2017, compared to 1 600 expected in 2016. This device allows employees from several years before the legal retirement age (up to five years in the plants in Rennes and Poissy), with 70 % or 75 % of their gross compensation ;
  • finally, 125 employees can request leave ” long-term “. Paid 600 euros gross per month and have a bonus, they allow the volunteers to leave the company for a maximum of two years.

But this plan divides the unions. If five have signed it, the CGT has rejected. According to the central trade union ” this is the fourth plan (…) is unacceptable and totally unwarranted.” But to Franck Don, a CFTC, interviewed by Agence France-Presse (AFP), it is ” not a new social plan, “, but just ” starts on the basis of the volunteering “, as agreed in the three-year agreement social concluded in July with the majority unions. the ” again, too timidly, to recruit “, but ” the worst is behind us “, also told the AFP Jacques Mazzolini, of the CFE-CGC.

indeed, the competitiveness plan, which provides the objective of 1 000 new hires in CDI by the end of 2019. PSA aims to create 28 models by 2022.
The precise number of recruitment for 2017 has not yet been set. In addition, management expects the ” the arrival of over 2 000 young people “ in 2017, learning, contrat de professionalisation or internships.

The company also believes that its policy of adjusting the workforce is beginning to bear fruit. Thus, according to it, 63 % of the personnel occupied in June of professions ” in the balance “, that is to say, where the competences are in line with the needs. The rate was 58% a year earlier.

  • the finances of The PSA group are back in the green
The president of the management board of PSA,  Carlos Tavares, June 20, 2016.

” Back in the Race “Push-to-Pass “. Has its arrived at the head of PSA, Carlos Tavares launches in 2014 a recovery plan, draconian group. With ” Back in the Race “, the chairman of the management board was, inter alia, required cost reduction, among others through the efforts required of the employees, a simplification of the ranges and even assignments in the area of scooters. The group also sold, in July 2015, 100 % of its shares of its historical club football, FC Sochaux, the chinese group Ledus.

In February, the automaker had announced to be back in the green already in the last year. PSA has indeed achieved a net profit of 1.2 billion euros in 2015. A positive result for the first time since 2010.

to move to the next step and find a ” profitable growth “, the management then announced in April its new plan : ” Push to Pass “. It provides for the creation of 28 models in the next six years,, whose four electric vehicles and seven plug-in hybrids. The group account increase by 10 % its turnover by 2018. In July, the good news continued for the group, which had ” a record of profitability, “. During the first half of 2016, it has doubled its net profit to 1.21 billion euros.

The automaker also wants to diversify its offer in the framework of its new plan. The group announced Monday it has entered into exclusive negotiations to acquire the dealer’s motor vehicle opportunities French AramisAuto, number one in the Hexagon.

Concretely, at the end of the negotiations, the PSA will have bought 30 % of the share capital of the company currently held by investors. In a second time, PSA will subscribe to a capital increase, at the end of which it will own a majority of the units. The constructor for this operation to contribute to developing its presence in the used vehicle.

” Our ambition is to nearly double our sales of used vehicles to reach 800,000 in sales by 2021, and to multiply by four the profits related to this activity “, has announced Carlos Tavares Monday in a press release.

  • sales still fragile in France and Europe

But this profitability is found and these ambitious goals have not prevented a decline in sales for PSA since the beginning of the year. The group is in the process of being caught up by Renault to the classification of the registrations, in France and in Europe.

On the first nine months of the year, PSA has registered nearly 520 000 new passenger cars in France. An increase of 2.6 % in a market growing an average of 6.3 %, according to the latest data published by the French Committee of automobile manufacturers. During the same period, Renault has registered nearly 485 000, with an increase since the beginning of the year of 9.2 %.

Read also : Strong growth in the automotive market French

In September, the renault brand has even doubled its rival in terms of sales volume. PSA has experienced a steep decline compared to September 2015 (6.8 %), dragged in particular by the poor performance of its brands Citroen (- 13.5 %) and DS (- 12,2 %). While Renault saw its sales jump 8.2 %.

The situation is substantially the same on the european market. Renault, which has at this moment of the renewal of a large part of its range, has doubled its competitor’s French in September, is a delightful second in europe behind germany’s Volkswagen. Its sales have increased over the last month to 18.7 percent, while PSA was 5.2 %, compared to September 2015.


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