PSA’s chairman acknowledges potential headquarter relocation image

According to chairman Louis Gallois, PSA Peugeot Citroen, Europe’s second-largest automaker, is currently reviewing a potential list of relocation sites for its possible headquarters move in other areas of the Paris region.

Gallois has acknowledged the previous reports on the matter in an interview in Toulouse, France, taken on the sidelines of an event that was marking the first A350 plane delivery to Qatar Airways by Airbus Group NV. He added that the company’s executives are nowhere near a decision on the new location, as they need to carefully weigh in the costs associated with each site. Today, the automaker is renting its headquarter space, as back in 2012 it had to sell its five-decade-old headquarters building, sitting in the prestigious neighborhood near the Arc de Triomphe in Paris. The company used the 245.5 million euros ($301 million) proceeds to try and restore earnings after the European market crumbled amid a six-year slump.

Under new chief executive officer Carlos Tavares the automaker has started the reorganization process, which included a drive to earn more cash by selling separate 14% stakes to its Chinese partner Dongfeng and to the French government. The carmaker also saw for the first time the founding Peugeot family lose control over the Group – as theyr holding also shrunk to a matching 14%.

Via Bloomberg