PARIS: President Francois Hollande on Saturday denounced a plan by carmaker PSA Peugeot-Citroen to cut 8,000 jobs as unacceptable, and said it must be renegotiated.
The struggling French carmaker announced the cutbacks Thursday, along with its intention to close a major factory north of Paris. Employees staged a protest the same day, and unions are calling for more.
In his Bastille Day interview on French television, Hollande said the plan was a “shock” for workers, their families and their communities.
He told two interviewers from the major television networks TF1 and France-2 that the “plan is not acceptable as it stands and therefore it will not be accepted.”
Hollande, who took office in May, said the government wants an expert to assess Peugeot’s finances and make recommendations for the company. He added that the government would soon unveil a plan for the car industry, including incentives to buy French-made cars.
Hollande campaigned for the presidency on a promise to “re-industrialize” France, reinvigorate its manufacturing sector and prevent jobs from going to Asia. Sorting out France’s car industry may be his first big test on that front.
Peugeot-Citroen, like its peers, is struggling, warning that it faces a first-half loss of €700 million ($850 million) this year. The company wants to save €1 billion as it tries to compete in Europe’s stagnant car market. It is suffering particularly amid a slump in sales in the recession-hit south of Europe, and saw sales plunge 20 percent in Europe in the first quarter.
But Hollande wouldn’t let the wider European economy take all of the blame for Peugeot’s troubles. He said the company shares responsibility and accused its management of holding back the cost-cutting plan until after he took office, saying that the delay amounted to a lie.
During the campaign, French media reported that advisers for then-President Nicolas Sarkozy, who ran against Hollande, were pressing company executives to avoid announcing big layoffs.
French president says Peugeot plan is unacceptable, seeks renegotiation
French president says Peugeot plan is unacceptable, seeks renegotiation
Diriyah Co. partners with Midad to develop Four Seasons hotel in Diriyah
RIYADH: Saudi Arabia’s sovereign wealth fund-backed developer, Diriyah Co., has signed a joint development agreement with Midad Real Estate Investment and Development Co. to construct the Four Seasons Diriyah Hotel and private residences.
The partnership will strengthen collaboration between the two companies through the development of the luxury Four Seasons Diriyah, which will feature 159 rooms, alongside private Four Seasons residences, spanning approximately 235,000 sq. meters within Diriyah’s master plan.
The project’s total value is projected at SR3.1 billion (approximately $827 million), encompassing both land acquisition and construction expenses.
Midad is one of the Kingdom’s leading real estate developers, expanding its portfolio of high-end projects and maintaining numerous strategic partnerships with prominent global brands, reinforcing its reputation as a trusted name in luxury residential and hospitality development across Saudi Arabia.
This partnership marks the first major collaboration between Diriyah Co. and Midad, supporting Diriyah’s plans to develop 40 luxury hotels across its two main projects: the 14-sq.-km Diriyah Project and the 62-sq.-km Wadi Safar Project, a premium destination that blends lifestyle, culture, and entertainment.
Commenting on the agreement, Minister of Tourism and Secretary-General of Diriyah Co., Ahmad Al-Khatib, said: “The Kingdom continues to set new standards in developing tourism destinations, with Diriyah at the forefront.”
He added that such partnerships enhance the world-class experiences Saudi Arabia offers and strengthen the Kingdom’s position as a leading destination in this sector.
Diriyah Co. CEO Jerry Inzerillo commented that the Four Seasons Diriyah Hotel and Residences will be one of the Kingdom’s largest luxury hotels.
“We are proud to announce this joint development with Midad, one of Saudi Arabia’s top real estate developers. This agreement reflects our ongoing commitment to enabling Saudi partners to contribute to Diriyah’s transformative journey and confirms Midad’s confidence in the opportunities the project presents,” Inzerillo added.
Midad CEO Abdelilah bin Mohammed Al-Aiban said: “This project is a pivotal milestone for our company, allowing us to bring the Four Seasons experience to one of the Kingdom’s most prominent heritage destinations.”
He added: “We are excited to deliver a project that embodies design excellence, world-class service, and sustainable value, while contributing meaningfully to Saudi Arabia’s tourism, cultural, and economic ambitions.”
The collaboration comes amid rapid progress on the SR236 billion Diriyah project, which has awarded construction contracts worth more than SR101.25 billion to date.
Diriyah is expected to contribute approximately SR70 billion directly to the Kingdom’s gross domestic product, create more than 180,000 jobs, accommodate 100,000 residents, and host around 50 million annual visitors.
The development will feature contemporary office spaces accommodating tens of thousands of professionals across technology, media, arts, and education, complemented by museums, retail destinations, a university, an opera house, and the Diriyah Arena.
It will also offer a diverse selection of restaurants and cafes, alongside nearly 40 world-class resorts and hotels distributed across its two primary master plans.
