Report – In drive to lower costs, PSA could give up prestigious headquarters location image

PSA Peugeot Citroen, the second-largest European carmaker, has been deeply affected by the region’s six-year slump in demand that led to sales falling to record two-decade lows.

Now, according to sources that have knowledge of the company’s strategy, the French automaker is mulling whether to give up its headquarter that sits in a prestigious – and utterly expensive – location near the Arc de Triomphe in Paris after staying there for half a century. That would be an integral part of the cost cutting drive across the company, which now also impacts executive ranks. According to the people, who declined to reveal their identity because the decision is still private, the vast majority of the people working now in the location – the Avenue de le Grande Armee – would give up Paris in favor of a new site in the suburb of Poissy, where the carmaker also has a plant.

According to a company spokesperson, “no decision has been made yet,” but the company did initiate “a study to evaluate several options to better manage real estate assets.” The sources added that CEO Carlos Tavares has already outlined the plan during a meeting of PSA’s supervisory board held this week – but the decision would not be final until unions also have a chance to review it in January. The headquarter shift – if doesn’t get a veto – would be progressive and span until the end of 2016.

Via Automotive News Europe