As part of a broader plan to reduce costs, PSA Peugeot Citroen aims at merging the national subsidiaries of its two main brands in European countries.
“It is indeed a general policy on the continent to try to find synergies where we can, ” declared Valerie Gillot, a spokeswoman for the Citroen brand. “Local entities will communicate at their pace in each country they’re located.”
The carmaker’s Swiss subsidiaries, Peugeot Suisse and Citroen Suisse’s headquarters, will soon merge in Geneva, where Citroen is located. The announcement comes after PSA sold its headquarters in the French capital of Paris. The building was sold for €245.5 million to Ivanhoe Cambridge, the real estate division of Canada’s Caisse de dépôt et placement du Québec. When selling the property Peugeot also signed a rent contract that is good for nine years, which allows the company to rent it from the new owners. The ontract can be renewed once that time period has passed.
In February 2012 the company announced it plans to sell assets after net debt more than doubled in the second half to 3.4 billion euro. Peugeot completed a 1 billion-euro share sale through which GM took a 7% stake in the French automaker as part of an alliance between the two.