Peugeot engineer
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PSA Peugeot Citroen announces 8,000 job cuts

12 July 2012 Last updated at 17:06 BST

The French carmaker PSA Peugeot Citroen has announced 8,000 job cuts and the closure of an assembly plant as it struggles with mounting losses at the core automotive division.

The Aulnay plant near Paris, which employs more than 3,000 workers, will stop work in 2014 as part of a drive to reorganize the company.

A second factory in Rennes, western France, will shed 1,400 of its 5,600 jobs as it down-sizes in response to shrinking demand for larger cars such as the Peugeot 508 and Citroen C5.

Christian Fraser reports.