New car sales in France fell 7.3% in October compared to the same period last year, producers said today, in another economic signal that Europe is sliding into recession.
The motoring sector employs, directly or indirectly, 10% of the French workforce, and companies have ordered massive production cuts, with several plants temporarily shuttered and hundreds of workers sent home.
The French motor manufacturers' association said that sales of French-built cars had fallen by 8.1% to 92,923 units in October and that of imported vehicles by 6.5% to 82,091.
'It's a catastrophe,' said the manager of a parts supplier.
'I've had to cut 40% of the staff, cutting all the temps and those on short-term contracts and making nine full staff redundant.
Last month, French giant Renault closed almost all of its French factories for a couple of weeks, while PSA Peugeot-Citroen said it would slash production by 30% and suspend workers for several days.
Motor construction by Renault, PSA Peugeot Citroen and some smaller firms directly employed 275,000 people in France last year.
When sub-contractors, suppliers and industry services are taken into account, fully 2.5 million people depend on the sector, the lynchpin of traditional manufacturing industry in France.
The slowdown in manufacturing has had knock-on effects across the economy. Steel giant ArcelorMittal said last week it would shut down furnaces at sites across Europe for at least six months because of the fall in demand.
