As part of a $1.1 billion cost-cutting effort, PSA, the parent company of both Peugeot and Citroen, will shed 6,000 jobs in Europe, with 2,500 white collar jobs, 2,500 contract worker jobs and 1,000 blue collar jobs expected to be cut in 2012.
PSA claimed that their car-making operations would barely turn a profit in the coming year and that the company’s cash flow would be negative. “The competitive environment has become more challenging due to pricing pressure, which has intensified in Europe since September, and the unfavorable impact on the country mix of the falloff in demand in southern Europe,” the company said in a statement released to Automotive News.
One bright spot for PSA was that sales outside of Europe have risen 41 percent, with China in particular acting as a bright spot for the company.
[Source: Automotive News]