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Peugeot CEO sees rival plant closures - Les Echos
September 26, 2012 / 7:12 PM / 5 years ago

Peugeot CEO sees rival plant closures - Les Echos

PARIS, Sept 26 (Reuters) - Rival automakers in Europe will have to follow PSA Peugeot Citroen in closing plants to deal with overcapacity, Chief Executive Philippe Varin told Les Echos newspaper in an interview published on its website on Wednesday.

“The European market has too much capacity and this will remain the case,” Varin said ahead of the Paris auto show.

“It is obvious that a certain number of plants will have to close,” he added. “We’ve laid out our plans, but other manufacturers will have to take similar steps. Some of our competitors in Europe are losing even more money than us on every car they sell. The current situation is untenable.”

The CEO added that he was sticking to his forecast for a 12 percent drop in the French auto market this year.

“The pressure on prices remains extremely high,” Varin said.

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