|By Marketwired .||
|January 29, 2013 10:52 AM EST||
LONDON -- (Marketwire) -- 01/29/13 -- Finspreads: A French court has order the suspension of restructuring plans by car manufacturer Peugeot Citroen, claiming the company had not adequately consulted employees. The plans, which could see the loss of 8,000 jobs and the closure of the factory in Paris, have been the source of much controversy in France.
The company said that despite the ruling, it would continue with negotiations with unions about the cuts. The court order comes after complaints from workers at the parts supplier subsidiary Faurecia.
It was the CGT union who managed to successfully argue that Peugeot had failed to respect legal obligations to state that two of the Faurecia sites were likely to be affected by the planned closure of the manufacturer's factory in Paris.
The company's difficulties have arisen due to a depressed home market that has affected many of its other European rivals, with EU car sales down by 8.2 per cent since 2011.
At 1345GMT during trading in Paris, Peugeot's shares were valued at EUR 6.24, a fall of 1.06 per cent.
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