PSA Peugeot Citroen is to rationalise certain European divisions to establish joint operations, with for example, Peugeot Germany in Saarbrucken moving to Citroen’s headquarters in Cologne.
“There will be no redundancies – that is not the goal at all,” a PSA spokeswoman in Paris told just-auto. “It is…to rationalise the use of space and departments. It will happen in 2012 – we have no precise dates.”
PSA’s move to centralise European operations comes as the automaker engages in a wide-scale effort to reduce costs and sell assets after reporting a sharp drop in earnings.
The French automaker posted a 48% drop in net profit in 2011 to EUR588m (US$773m), impacted by losses at its core automobile division in the second half of the year.
Further details of PSA’s European rationalisation are expected later.