Tavares: PSA Won’t Sell Faurecia to Boost Profits

PSA Peugeot Citroen's new CEO Carlos Tavares doesn't rule out a possible sale of the company's 52% stake in supplier Faurecia SA, Reuters reports.

But he tells reporters that doing so would only raise capital not improve the carmaker's profitability. "There's a big difference between putting cash in the bank and generating profit," he says.

Tavares predicts PSA will return to positive cash flow as early as 2015.

Earlier reports suggested the company might generate needed cash by shedding its Faurecia holding. But PSA's preferred strategy apparently is to retain the parts making unit and instead raise €3 billion by selling equal 7% stakes in itself to the French government and China's Dongfeng Motor Group.