French carmaker PSA Peugeot has cut about 10 per cent of the workers in its mainland manufacturing venture with Hubei-based Dongfeng Motor amid falling sales.
The venture laid off 1,000 contract staff from a total of about 9,000 employees, PSA Peugeot China said.
'The workers were mainly on short-term contracts, which weren't renewed from November 1,' said Alexis Vannier, the communications director of PSA Peugeot China. 'It's normal for the industry to adjust manpower pertaining to sales conditions. When the sales go up again, we'll hire those staff back.'
General manager Liu Weidong said in February Dongfeng Peugeot Citroen expected to produce and sell 280,000 vehicles on the mainland this year, up 30 per cent from last year.
But according to company figures, it sold just 147,000 units in the first nine months, up 1.3 per cent from last year. Mr Vannier said PSA Peugeot had cut this year's sales target to 200,000 units.
Industry sources have said Chery Automobile, Dongfeng Peugeot Citroen, Changan Ford Mazda and Anhui-based Jianghuai Motor began to cut staff because demand for vehicles was under pressure.
Volkswagen China, the biggest overseas carmaker in the country, said last week that the 'worst may be yet to come'.
