Over in the Breakfast thread we were discussing the possibility that Peugeot would move the plant to Slovakia, so the jobs are definitely not "going home" to France.

If the plant is profitable, it might be a question of opportunity cost. It might be more profitable elsewhere.

If Peugeot expects most of future sales to be in Eastern Europe, the "logistical costs" will be reduced by moving production, not to speak of lower labour costs.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

In the FT article on this topic today, they quoted a Peugeot guy saying that each Peugeot 206 cost them 415 euros more than in their French plant.

They also noted that it was part of a strategy to close off smaller plants and focus on the big plants in France (which were likely to have their employment trimemd down as well) and new plants in Eastern Europe.

Financial analysts said it was "logical" and "necessary" in an industry with overcapacity.

In the long run, we're all dead. John Maynard Keynes