/ Citroen, Industry, News, Peugeot / PSA Peugeot Citroen Might Reduce Model Range to Return to Profitability

PSA Peugeot Citroen Might Reduce Model Range to Return to Profitability

Linked In Share
PSA Peugeot Citroen Might Reduce Model Range to Return to Profitability

PSA Peugeot Citroen might see its model range reduce, part of the restructuring strategy aimed at returning the company to profit.

The new chief executive officer of PSA Peugeot Citroen, Carlos Tavares, spoke for the first time since it took the new job last year. He said that although the automaker will continue efforts in keeping its position as a general market manufacturer, it will need to reduce its current model range. Tavares did not rule out the possibility of cutting capacity in France beginning with 2016.

PSA Peugeot Citroen will manage to save 3 billion euro in an agreement with the French government and Chinese company Dongfeng, if it promises not to shut down any plants in France for a period of two year once the agreement is signed.

“We are going to respect very rigorously the agreement we have with our unions, which means no factory will be closed until 2016 at least. That’s the deal,” Tavares said.

The French automaker, which has been struggling with the European crisis for more than six years, will sell 14% stakes to Chinese partner Dongfeng and the French government in a  capital increase.

“We must stop the cash burn, hopefully by 2016. To fix things, we must take three steps: increase operating profit by making sure our pricing is good, accelerate progress in reducing costs — one important way is to reduce stocks, which are higher than other companies — and establish better rapport with suppliers to control component prices,” added Tavares.

by Mircea Serafim (my Google+) - Monday, March 17th, 2014 - filed under Citroen, Industry, News, Peugeot. Image credit: .
Linked In Share
Related Articles
carlos tavares dongfeng profitability psa psa peugeot citroën


Discuss: PSA Peugeot Citroen Might Reduce Model Range to Return to Profitability

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

[VIDEO] See a Lamborghini Diablo SV spit flames
[VIDEO] See a Lamborghini Diablo SV spit flamesA classic Lamborghini Diablo SV has been recently spotted out while spitting flames through its exhaust system and gathering a ...
Mazda teasing new-gen MX-5 / Miata
Mazda teasing new-gen MX-5 / MiataThe Japanese based automaker Mazda has recently released a new teaser image with the upcoming generation of the MX-5, which is ...
Cadillac plans admiral ship and SRX refresh for 2015
Cadillac plans admiral ship and SRX refresh for 2015The Cadillac brand, which is among the premium stars in China, is not doing so well at home in the US. General Motors aims to ...
McLaren P1 GTR gets teased, debuts at Pebble Beach
McLaren P1 GTR gets teased, debuts at Pebble BeachMcLaren has finally released the first teaser image with the upcoming P1 GTR, which basically admits the existence of the ...
Jaguar F-Type Project 7 announced for Pebble Beach
Jaguar F-Type Project 7 announced for Pebble BeachThe Jaguar F-Type Project 7 will be officially introduced this weekend, during the 2014 Pebble Beach Concours d’Elegance, as ...
Dodge unveils Challenger SRT Trans Am race car
Dodge unveils Challenger SRT Trans Am race carThe North American based automaker Dodge has officially pulled the wraps off its newest creation, the Challenger SRT Trans Am ...
Fiat Chrysler five-year business plan endangered by possible merger delay
Fiat Chrysler five-year business plan endangered by possible merger delayThe plans to make the seventh largest automaker in the world a true global player could be endangered if the long-awaited merger ...
Volvo V60 D6 Plug-in Hybrid by Polestar gets more power
Volvo V60 D6 Plug-in Hybrid by Polestar gets more powerThe Volvo V60 D6 Plug-in Hybrid has been recently upgraded by Polestar and the high performance diesel wagon is now more ...
2015 Skoda Fabia – new teasers released
2015 Skoda Fabia – new teasers releasedSkoda has released new teaser images with the upcoming generation of the Fabia ahead of the model’s unveil which is expected to ...
The Uber ride sharing app disregards Berlin ban
The Uber ride sharing app disregards Berlin banUber Technologies, the company behind a smartphone ride-hailing application that has offended taxi services from all over the ...
[VIDEO] 2015 Dodge Charger SRT Hellcat gets first promo
[VIDEO] 2015 Dodge Charger SRT Hellcat gets first promoDodge has released the first promotional video with the brand new 2015 Charger SRT Hellcat, which has been officially unveiled ...
Audi and Mercedes are catching up to BMW
Audi and Mercedes are catching up to BMWThe global sales race has been a heated battle for many years, but the figures from last month showed the sprint is one that ...
Prime Minister says Brilliance could build a factory in Italy
Prime Minister says Brilliance could build a factory in ItalyThe country’s prime minister, Matteo Renzi, has revealed that Chinese automaker Brilliance China Automotive Holdings is mulling ...
US: Mercedes-Benz GLA supply could be lower than demand
US: Mercedes-Benz GLA supply could be lower than demandAfter the compact crossover model was added to the European roster in March, the debut in September in the US is expected to be a ...
Toyota’s new Aygo targeting young buyers
Toyota’s new Aygo targeting young buyersThe Aygo minicar, a sibling to PSA’s Citroen C1/Peugeot 108 duo, has been treated to a new generation. If way back in 2005 the ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Dodge Challenger SRT Trans Am 1
volvo v60 d6 plug-in hybrid polestar 1
2015 skoda fabia 1
new_york_rain
Spy-Shots of Cars
mazda mx-5 tuning bbr 1
lamborghini huracan super trofeo 1
range rover sport pickup truck 1
chevrolet niva concept 1
dodge charger srt hellcat 1
toyota ft-1 vision gt 1
0-Renault Scenic xMod Test Drive Exterior (7)

More automotive from inautonews
A classic Lamborghini Diablo SV has been recently spotted out while spitting flames through its exhaust system and gathering a lot of curious eyes onto it and a lot of camera lenses. If you are used to seeing wrecked bodies when hearing the words “Lamborghini” and “flames” put next to each ...
read more
Inautonews Editors Section
Test Drive: Renault Scenic XMOD 1.6 dCi
Test Drive: Renault Scenic XMOD 1.6 dCi One of the most popular minivans currently available for order, the Renault Scenic, has given me some different sensations but in the end all I had ...
Top 10 Ferrari F1 drivers No. 7: Alain Prost
Top 10 Ferrari F1 drivers No. 7: Alain ProstMatchless throttle delicacy, unequalled tactic acuity and race craft beyond the usual borders. The Professor was one of the greatest drivers ever to ...
Top 10 Ferrari F1 drivers. Pos. 8 Froilan Gonzalez
Top 10 Ferrari F1 drivers. Pos. 8 Froilan GonzalezIn the shadows of Ascari and Fangio lies a giant. With a mobster like allure, powerful as a wrestler and fast as hell, he is the man who broke the ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Several Land Rover vehicles for airbag problemJaguar Land Rover has recently issued a recall which is affecting more than 45,000 of its vehicles ... Recall roundup: Mitsubishi vehicles in AustraliaMitsubishi has recently announced a recall for several vehicles across Australia, because of a ...
Safety Section