Under the alliance with GM, the American company became the French automaker's second-largest shareholder with a 7-percent stake, behind the Peugeot family, whose stake dropped from 31 percent to around 25 percent.
Peugeot says the deal will allow it to address tightening emissions targets in Europe and strengthen its position in emerging markets in a way not economically feasible on its own.
Daniel Vernet , who has worked at the Aulnay factory since 1977, maintained that the real motive driving the closure is the company's far-flung goals. "Peugeot coffers are not empty, but they need cash flow to complete construction of their factory in China and India. What happens here is to sacrifice French employees."
Nicolas Garriga at Aulnay-sous-Bois and Masha Macpherson in Paris contributed to this report.
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