PSA Ponders S. American Partnership, Warns on U.K. Plant

PSA Group CEO Carlos Tavares tells reporters in Detroit he is “very open” to forming an alliance to serve the South American market, Reuters reports.

Tavares’ comment was in response to a question about Ford Motor Co.’s signal earlier this week that it is looking for ways to revive its struggling operations in the region. He tells reporters that he hasn’t yet discussed options with Ford and declined to say whether he would pursue a discussion.

Separately, Tavares reiterates that the fate of the company’s Vauxhall Astra small car factory in Ellesmere Port, England, remains uncertain. He claims current production costs there are twice those of PSA facilities in France.

Erasing that gap and improving the factory’s quality ratings will be essential to ensure the plant’s sustainability, he adds. Tavares likens the efficiency of Ellesmere Port today with that of other PSA operations four years ago—before he launched major turnaround measures for the French carmaker.