PSA Peugeot Citroën President Christian Streiff has signalled “massive production cuts” this fourth quarter “as it is vital that we are correctly positioned to face 2009”.
The group would cut output by about 30% as inventory was currently above 2007 levels and the plan was to reduce stocks to year-ago levels or below.
The company had already said they would not be renewing temporary worker contracts and it was now up to the individual plants in France to decide what permanent staff cuts to make after talks with unions. It was too early to make any announcements on such moves.
PSA are determined to manage their cashflow carefully, the spokesman said, adding that 2009 would be a difficult year.
PSA said the third quarter results were hit by the drop in automotive markets during the quarter as western European declined 10.7% and growth rates in developing regions slowed where the group have a strong presence.
“In this context, the group’s registrations decreased by 5.8% for the first nine months, whilst market share was maintained at 13.8%.”