By Dietmar Hawranek and Isabell Hülsen:
When Helping Is Hurting
Ironically, the victims of these two developments — focusing on production in France and high wage increases — are those whose cause is being championed by governments and labor representatives: the autoworkers themselves. Workers at the [Peugeot] Aulnay plant had to look on as their company went into gradual decline. Aulnay was once one of the most modern plants in the country, annually producing more than 400,000 cars. Today, fewer than 140,000 vehicles roll off its assembly lines each year. An auto plant that produces so few vehicles can hardly be profitable. If President Hollande and the unions compel Peugeot to keep the plant in operation, they will only accelerate the company’s demise.
via French Industrial Policies Are Aiding Rapid Decline of Peugeot – SPIEGEL ONLINE.
What else can one expect from Communism? The total destruction of economic production is part of the Stalinist psyche. They believe that destruction brings renewal as they see it. Peugot-Citreon is finished as a major car maker but will continue because the French buy quality French cars.
It would be interesting to contrast Peugeot-Citreon with BMW or Mercedes. The latter aggressively pursued export markets while the former did not.