UPDATE 2-Peugeot sweetens cutbacks with plant guarantees


* Peugeot pledges to avoid plant closures in 2014-16 * CEO Varin says capacity cuts likely at some sites -unions * Workers being prepared for cuts to small car production (Adds progressive end to domestic small car production, union comment) By Gilles Guillaume and Laurence Frost PARIS, Sept 25 (Reuters) - PSA Peugeot Citroen pledged to avoid further factory closures in talks with French unions on Wednesday but suggested it may ...


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