From Automotive News Europe
Paris (Reuters) - French car parts firm Faurecia will shut most of its 37 plants in France for most of the month of December, in response to falling demand from carmakers and the car sales slump, a company source said.
The group, majority-owned by PSA/Peugeot-Citroen, employs 17 000 staff in France, the vast majority of which work on industrial sites. Faurecia declined to comment.
Carmakers are battling falling sales, as the financial crisis and worsening economic climate batter consumer confidence, putting customers off making big purchases.
European new car registrations fell 14.5 percent in October, the sixth consecutive monthly fall. Registrations are down 5.4 percent in the first 10 months of the year.
In France, Peugeot and Renault have both already announced production cuts for the fourth quarter in an attempt to reduce stocks of unsold vehicles left at the year-end.
The company also said 27 Nov that it has signed a new financing facility for Euro 1420 million ($1824 million). Euro 1170 million will come from a syndicated bank loan with the remaining Euro 250 million coming from majority shareholder PSA Peugeot Citroen.
The financing will be split into two equal parts, maturing in November 2011 and November 2013 respectively, the company added.