PSA’s new boss, Christian Streiff, wants to relocate more production in low cost countries and reduce the workforce to drastically reduce manufacturing costs.

Streiff reportedly told the Figaro in an article published today that he is not just seeking price reductions of one or two percent. He wants the company to get a much firmer grasp on rising fixed costs and achieve big cost reductions.

He said that after certain measures had been taken the company would probably find that the workforce could be reduced.

Furthermore he wants suppliers to be brought in much more closely on new product development and for key elements of design and development to be taken over by suppliers. Streiff wants to bring down development times from the current average of four years, said the report.

PSA announced today that it is ending talks with Proton, that might have led to a production, sales and marketing agreement for Peugeot and Citroen cars in Malaysia and other Asean countries.