Peugeot to sell property to raise cash: unions

15th December 2011, Comments 0 comments

French car manufacturer PSA Peugeot Citroen plans to sell off property in order to raise cash, union officials said on Thursday ahead of a meeting with the giant automaker.

"PSA is selling off the family jewellery to get cash, it will happen soon," said CFDT union official Xavier Lelasseux.

He said the company also planned to sell other properties, with its Citroen site at Epinettes, northwest Paris, to go for 60 million euros next year.

Jean-Pierre Mercier of the CGT union said his group wanted to make sure that the proceeds from any such sales went to protecting jobs, rather than be spent on supporting the share price to the benefit of shareholders.

PSA Peugeot announced 1,900 job losses in October and another 6,000 -- of which 4,300 in France -- under plans for 2012.

On Wednesday, the company warned that it expected to report a "significant loss" for the second half of the year, citing the need to cut costs in the face of increased competition from Asian firms, as well as environmental pressures on the industry.

© 2011 AFP

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