PSA, Europe’s 2nd largest auto manufacturer behind Volkswagen, has already announced job cuts in the order of 4800 for 2007 due to the declining car sales in Western Europe. This follows after a hiring freeze in 2006 and the closure of the Ryton plant in England.
PSA boss Christian Streiff stated that Cap 2010 would allow the company to return to “growth and profitability”. This follows after three profit warnings in the past year.
When asked about a merger with another car company, Streiff responded by saying that the company’s priority at the moment was to focus on boosting profitability and developing organic growth.