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French government criticises Peugeot family over ailing carmaker

The French government has criticised the family behind carmaker Peugeot Citroen over its stewardship of the struggling family business.

The French government has criticised the family behind carmaker Peugeot Citroen over its stewardship of the struggling family business.

In a report, released in response to Peugeot’s planned job cuts, Emmanuel Sartorius, a senior civil servant in the finance ministry, seemed to suggest that Peugeot had at times put the family’s financial interests ahead of the company.

The group has been too slow to develop international alliances and is too reliant on the European car market, according to the document. It was particularly critical of the family’s policy of protecting the carmaker's independence “in place of seeking a partner that would have allowed it to become a world-class player”.

Peugeot is planning to cut 8,000 jobs and shut its Aulnay plant near Paris.

The report said strategic errors were partly responsible for the problems at the group, and concluded that the cuts were “inevitable” and “urgent” due to overcapacity among Europe’s carmakers.

Group revenues for the first half of 2012 fell to €29.5 billion from €31.1 billion during the same period in 2011.

The Peugeot family controls about 25% of the carmaker.  

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