Peugeot French production increase earns presidential visit

PSA Peugeot Citroen (PEUP.PA) said on Friday it had chosen a French factory over a rival Spanish plant to expand engine production, prompting a visit by President Francois Hollande to highlight a bright spot in France's gloomy labor market. The eastern French plant beat out Peugeot's factory in Vigo, Spain, for the additional 200,000 engines per year. Manufacturing boss Yann Vincent said Peugeot's decision reflected "work done by the Trémery site to meet competitiveness targets", including productivity concessions by unions. The new production will bring no net increase in jobs, Vincent said, and the plant's 3,700-strong workforce is still expected to decline through attrition.

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