PSA Peugeot Citroen CEO Philippe Varin said the company plans to cut its monthly cash burn to half reaching 100 million euro ($133 million) in 2013.
CEO Philippe Varin also said that PSA Peugeot Citroen still aims at breaking even in terms of operating cash flow by the end of 2014, while Maxim Picat, the head of Peugeot says that the company is expected to turn to profit again in 2015.
“We’ll have a positive cash flow at the end of 2014, in the following year we’ll have a profit again,” Mr. Picat is quoted as saying.
Recently Europe’s Second largest automaker announced it plans to cut 1,500 jobs by 2014 in Europe, as sales are heading towards a 17-year low. Peugeot spokesman Jonathan Goodman said that these 1,500 jobs include the 8,000 one s announced earlier this year, and that the workers who leave the company will not be replaced.
The European auto market is about to drop in 2012 to the lowest sales volume since 1995, according to the ACEA trade group. Peugeot is also shutting down a factory on the outskirts of Paris, its 39-year-old plant in Aulnay-sous-Bois.