Peugeot Reaches Deal With Unions to Cut Production Costs

PSA Peugeot Citroen, Europe’s second-biggest carmaker, reached a deal with labor leaders to reduce fixed costs at French factories, a key step as it looks for new partners to expand and shore up its finances.

Unions representing more than 60 percent of workers signed an agreement to freeze salaries in 2014 and reduce overtime pay in exchange for investment guarantees and new models, the Paris-based company said in a statement. Two unions backed by 36 percent of Peugeot employees in France rejected the proposal.