PARIS—A French trade union says Peugeot Citroen workers have shut down production and occupied a factory scheduled to be sold off to protest planned layoffs.
The CGT union said 300 workers were striking Jan. 16, a small percentage of the people employed at Aulnay, but the union said they were able to “paralyze” the factory.
PSA Peugeot Citroen did not immediately comment on the action.
France’s largest automaker announced last year that it planned to lay off 8,000 people and close Aulnay as it struggles to compete in Europe’s stagnant car market.
The government then found a company to take over the plant with a reduced workforce of 600 and offered Peugeot a $9-billion loan.
Peugeot and unions are still in talks over the deal.