PSA Peugeot Citroen, the second-largest European carmaker and one of the French icons when it comes to the motor industry, has announced it decided to move out of its historic Paris headquarters in 2017.
The company, which suffered greatly during the six-year slump of the European auto market and is now in part controlled by a Chinese partner, has unveiled numerous cost saving strategies recently – and part of that push includes deserting the building on Avenue de la Grande Armee, near the Arc de Triomphe monument in favor of a new location in the city’s western suburbs. Peugeot France director Xavier Duchemin announced the planned relocation during a New Year press conference at the current headquarters. While the company’s 19th century location origins refer to eastern France, Peugeot moved into the current building that faces one of the capital’s busiest roads back its 1960s joyful times – the brand was enjoying spectacular international success buoyed by the 404 model. The Peugeot-family controlled group acquired its competitors from Citroen in 1976 and just two years later it also purchased the European unit of America’s Chrysler.
Losing steam over the next decades, PSA had to sell its headquarters for 245.5 million euros (192.37 million pounds) back in 2012 as it faced strong headwinds from the aftermath of the 2008-2009 economic crisis. Now also Citroen’s headquarters located in Northern Paris are scheduled for closure, so the two brands are going to relocate around 2,200 employees. Last year PSA entered a 3 billion euro rescue share issue that saw the French government and Chinese carmaker Dongfeng getting matching 15% stakes with the Peugeot family.