To cut costs, PSA/Peugeot-Citroen will be merging the national subsidiaries of its two primary brands in Europe. Among the first ones to merge are the Peugeot and Citroen brand offices in Germany. Meanwhile, the company’s Swiss subsidiaries will be merging in Geneva, where Citroen is already situated. Citroen spokeswoman Valerie Gillot said that other national subsidiaries will follow as part of its policy to find synergies.
She said that local entities will communicate at their rate in every country they're located. PSA is undertaking ways to reduce costs and raise cash as auto sales have fallen in the core European market. Earlier this month, the automaker inked a deal to sell it 48-year-old base in Paris as part of a wider effort to raise cash and decrease its mounting debts.
The automaker had completed a 1 billion-euro share sale last month, through which General Motors Co. got a 7% stake in the French automaker as part of an alliance between the two firms. Industry association ACEA said that in the first quarter in the EU and EFTA countries, the sales of Peugeot and Citroen passenger cars declined by 17% while the market had fallen by slightly more than 7%.