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PSA: Cost Cuts of $1.2 Billion Won’t Be Enough
PSA Peugeot Citroen has informed union officials that it must deepen its cost reduction plan beyond the €1 billion ($1.2 billion) target announced in February because of the deepening slump in Europe's auto market, Reuters reports.
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PSA Peugeot Citroen has informed union officials that it must deepen its cost reduction plan beyond the €1 billion ($1.2 billion) target announced in February because of the deepening slump in Europe's auto market, Reuters reports.
The original cost-cutting goal set last October was €800 million ($1 billion). PSA aims to save as much as €1 billion per year through its purchasing and vehicle development tie-up with General Motors Co. But any such savings are years away.
French union official Jean-Francois Kondratiuk tells the news service that CEO Philippe Varin also briefed staff on plans to cut shift output of the Peugeot C208 subcompact from its plant in Poissy outside Paris to other factories in Europe. That would enable PSA to move production of the Citroen C3 supermini to Poissy from a facility in Aulnay, France, thus allowing the company to shutter the latter factory, according to labor leaders.
Manufacturing chief Denis Martin tells Reuters s there are "structural problems" in Aulnay but also at PSA factories in Rennes and Sevelnord, France.
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