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| Peugeot Citroen chief Varin to meet French government | |
| (about 17 hours later) | |
| French Prime Minister Jean-Marc Ayrault will meet PSA Peugeot Citroen chief executive Philippe Varin later amid growing tensions between the two sides. | |
| Monday's meeting comes ahead of a government aid package for the car sector to be unveiled later this week. | |
| The meeting follows a decision by Europe's second-largest carmaker to cut 8,000 jobs and close an assembly plant. | |
| President Hollande's government has criticised the move, sparking a tough response from Peugeot's board. | President Hollande's government has criticised the move, sparking a tough response from Peugeot's board. |
| Industry Minister Arnaud Montebourg, who has already met Mr Varin and trade union representatives, is scheduled to see Peugeot chairman Thierry Peugeot on Thursday. | Industry Minister Arnaud Montebourg, who has already met Mr Varin and trade union representatives, is scheduled to see Peugeot chairman Thierry Peugeot on Thursday. |
| This follows an interview Mr Peugeot gave to French daily Le Figaro, saying that government criticism of the company has weakened investor confidence and left it vulnerable to hostile takeover bids. | This follows an interview Mr Peugeot gave to French daily Le Figaro, saying that government criticism of the company has weakened investor confidence and left it vulnerable to hostile takeover bids. |
| Peugeot's share price has fallen almost 20% since it announced restructuring plans earlier this month. | Peugeot's share price has fallen almost 20% since it announced restructuring plans earlier this month. |
| Government criticism had created a "dangerous" situation, Mr Peugeot said. | Government criticism had created a "dangerous" situation, Mr Peugeot said. |
| Mr Hollande has denounced Peugeot's restructuring as "unacceptable", while Mr Montebourg questioned how the struggling carmaker was still able to pay dividends. | Mr Hollande has denounced Peugeot's restructuring as "unacceptable", while Mr Montebourg questioned how the struggling carmaker was still able to pay dividends. |
| Peugeot family members control Europe's second largest carmaker through a 25.2% stake commanding 37.9% voting rights. | Peugeot family members control Europe's second largest carmaker through a 25.2% stake commanding 37.9% voting rights. |
| 'Painful' | 'Painful' |
| Mr Peugeot had told Le Figaro: "We are ready to accept criticism, but there are limits... The attacks the company is currently facing have an immediate effect on (investor) perception. This is a dangerous situation." | Mr Peugeot had told Le Figaro: "We are ready to accept criticism, but there are limits... The attacks the company is currently facing have an immediate effect on (investor) perception. This is a dangerous situation." |
| He continued: "We are well aware of the seriousness of the plan to cut 8,000 jobs. These measures are painful. I understand they can cause shock within the company, the government and the whole of the country." | He continued: "We are well aware of the seriousness of the plan to cut 8,000 jobs. These measures are painful. I understand they can cause shock within the company, the government and the whole of the country." |
| Peugeot's intention to cut jobs and close a factory has caused dismay in Paris because the new socialist government came to power promising to reverse industrial decline. | |
| The job cuts and closure of an assembly plant at Aulnay, near Paris, in 2014 is part of an effort to stem operating losses now running at 200m euros ($242m; £156m) at Peugeot's manufacturing division. |