PSA Peugeot Citroen said on Tuesday that it expects to make annual savings of one billion euros by 2006 thanks to its cost-cutting plan, Reuters reported.
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According to Reuters, PSA said its strategy of sharing parts across model lines had already helped reduce costs per vehicle by €300 ($US325).
PSA said it expected further to reduce the cost per vehicle by €150 by 2006, taking savings between now and then to €800 million a year, Reuters said. In addition, further manufacturing improvements would generate extra annual savings of around €350 million euros by 2006, taking total savings to more than one billion euros a year.
According to Reuters, PSA said the cost saving plan would also help it increase output to meet its target of four million cars in 2006 – a 26% increase on its car sales in 2002.
PSA sales rose 4.3% to 3.267 million units in 2002, bucking a negative trend in the western European car market and lifted by buoyant demand in Brazil, central and eastern Europe and China, Reuters noted.
