PSA Peugeot Citroen said it may delay its planned EUR650m (US$850m) plant investment in India, adding only that it is “reviewing the investment calendar”.
The company said this would likely lead to “some timetable adjustments” but declined to confirm whether it was still committed to begin production in 2014 as originally planned.
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It announced the plans to build a factory in the Indian state of Gujarat last September but has since issued a series of profit warnings as sales in Europe have fallen.
Chief executive Philippe Varin announced the India investment as part of a strategy to reduce the group’s dependence on stagnating home markets. Europe accounted for about 54% of PSA sales in 2011, the highest share among major automakers, according to data from LMC Automotive.
Varin has also announced plans to save an additional EUR800m (US$1bn) this year and cut some 6,000 European jobs in an attempt to mitigate expected losses.
Peugeot announced earlier this month it was withdrawing from Le Mans 24 hours endurance racing ahead of the 2012 season.
