French carmaker PSA Peugeot-Citroen has revealed details of a major turnaround plan. Speaking before the annual shareholders’ meeting, Chief executive Christian Streiff said he want to address falling sales by developing and launching six new models in the next three years and he plans to cut fixed costs by 30% to counter rising raw material costs.
Streiff also spoke out against the strong euro, calling that “an enormous handicap” for European companies against US and Japanese rivals. Peugeot-Citroen remains Europe’s second largest carmaker after Volkswagen, but its market share in the region fell from 15.5% in 2002 to 13.3% in April of this year.
In April it announced plans to reduce the workforce in France by 4,800 this year through voluntary redundancies. Streiff said they would try to avoid major job losses and plant closures, but he added: “I can never say never.”
In a newspaper interview Streiff also talked about producing vehicles especially for developing markets such as China and Latin America to take advantage of rapid sales growth in those regions. To that end Peugeot recently announced plans to build a new factory in Russia.