Layoffs at Peugeot Signal France's Deepening Problems

Layoffs of 14000 are a "true shock"
Philippe Varin, chief executive officer of PSA Peugeot Citroen, speaks to the media following a news conference to announce the company's job cuts in Paris, France. Photograph by Balint Porneczi/Bloomberg

A bug-eyed little car known as the deux chevaux (meaning two horsepower) was an icon of the French car industry for more than four decades. Now, PSA Peugeot Citroën, whose Citroën unit produced the deux chevaux until 1990, has become an emblem of France’s deepening economic woes—and a key test for its new president, Socialist François Hollande.

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