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French minister says Peugeot should cut in Spain, not just France

France’s industry ministry is pressing the country’s leading carmaker to limit the impact of a domestic restructuring set to claim 8,000 jobs – by shifting part of the cuts burden to Spain.

Arnaud Montebourg, industrial renewal minister, was expected to raise the issue in talks on Thursday with PSA Peugeot Citroen chief executive Philippe Varin over a plan that involves shutting the firm’s historic Aulnay plant near Paris.

“It’s not just Aulnay. A production line is also set to be lost in Rennes, while the Madrid plant is being kept open,” said Montebourg, charged by the Socialist government with leading efforts to coax Peugeot into a rethink.

A spokesman for Spain’s industry ministry said the decision over where the cuts would fall was a matter for a private company and declined to comment further.

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