End of road for Peugeot workers as more job cuts are announced

The global economic slowdown ripped into Peugeot today as Europe's second-biggest carmaker announced a fresh range of 2700 job cuts.

Most of them will take place in France, which until now has remained relatively unscathed by the downturn. About 45 of Peugeot's UK workforce were offered voluntary redundancy last week as the business reacts to a huge decline in car sales.

Planned lay-offs since September at non-financial companies worldwide now total at least 172,000. To that can be added 89,500 financial-sector job losses.

Peugeot's cuts came as it forecast sales volumes for the car industry would drop 17% in the October-December quarter. Its plight highlights the crisis facing Europe's carmakers as high petrol prices and shattered consumer confidence stopped people making what for most is the second-biggest purchase after their homes.

Manufacturers in the UK and Europe have pressed their governments for taxpayer handouts to keep their businesses afloat.

Toyota said yesterday it would cut output, and Nissan predicted its profits would fall to zero. Renault last week said it would temporarily halt production at factories in France, Spain and Romania.