PSA Peugeot Citroen charts its own way forward.Soon after announcing that it would create two competing design teams for both its Peugeot For the bicycle manufacturer, see . Peugeot is a major French car brand, part of PSA Peugeot Citroën. It is the second largest automaker in Europe, behind Volkswagen. Peugeot's roots go back to bicycle manufacturing at the end of the 19th century. and Citroen brands, PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. Peugeot Citroen said it will embark on Verb 1. embark on - get off the ground; "Who started this company?"; "We embarked on an exciting enterprise"; "I start my day with a good breakfast"; "We began the new semester"; "The afternoon session begins at 4 PM"; "The blood shed started when the partisans an efficiency program designed to control costs, enhance R & D, redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. its product plan, and identify new markets. PSA has seen growth outside of Europe, a sharp improvement in vehicle quality, and successfully launched its 207 compact. Unfortunately, market share within Europe continues to fall, new model start-ups are slow, and competition is growing. In the short term, there will be a hiring freeze Noun 1. hiring freeze - a freeze on hiring freeze - fixing (of prices or wages etc) at a particular level; "a freeze on hiring" , and "measures to contain payroll costs and other overheads." Whether the French automaker will resort to buyouts like its American counterparts is as yet unclear. However, the number of temporary employees is being reduced, departing de·part v. de·part·ed, de·part·ing, de·parts v.intr. 1. To go away; leave. 2. To die. 3. employees are not being replaced, and at least one plant--Ryton in the UK--is gradually being phased out. Plants building vehicles on the same platform are being asked to develop synergies, and the capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. goal is to exceed 100% in 2007 with a further rise to 110% by 2010. In addition, the group's annual capital expenditure budget is being reduced from [euro]3 billion to [euro]2.5 billion, though this reportedly will not affect the product plan. Despite these cuts, PSA says it will renew its core models more frequently in order to keeps its product line fresh, and introduce six new body styles in new segments by 2009. While this is taking place, it also promises to cut its vehicle R & D expenditures by 15%. Since the overall expenditure will remain frozen at current levels, the company says this means it will be producing more models more quickly, and at a lower cost per vehicle. It is also studying a potential cooperative agreement with Malaysian automaker Proton that would give it an expanded Asian presence, and searching for local production capacity in Russia. [ILLUSTRATION OMITTED] By establishing competing design teams for both Peugeot and Citroen without increasing the number of designers, PSA says it will have smaller, more nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. groups with which to produce highly distinctive design themes. The head of each studio will report to the brand's design manager whose job it is to foster competition while ensuring the brand's values are maintained. The PSA Group also will continue to work with outside design houses, like Italy's Pininfarina, as it has in the past. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion