PSA Peugeot Citroen, which last month announced a cost reduction plan with 6,000 jobs cuts, won't outsource activities, chief executive Philippe Varin has said.

In an interview with French weekly newspaper Le Journal Du Dimanche, Varin insidted the group, which plans to cut jobs at its R&D unit, 3,500 directly and 2,500 for subcontractors, won't cut any job at its manufacturing units.

"Fears over industrial jobs aren't justified," Varin was quoted as saying, according to Dow Jones.

The car market had not picked up in 2011, contrary to initial expectations, Varin added, noting that, in Europe, it will be at best stable.

Hence the need to manufacture cars near emerging markets which keep growing, Varin said. But having operations there has nothing to do with outsourcing, he added.

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