Company Internationalization and European Works Councils in the Automotive Sector
Chapter 6: PSA Peugeot Citroën
117 Chapter 6: PSA Peugeot Citroën 6.1 The PSA Group 6.1.1 History and characteristics of the PSA group PSA Peugeot Citroën is a globally operating automotive company, headquartered in Paris, that manufacturers cars, commercial vehicles and motorcycles. In addition to the Peugeot and Citroën marques, the group includes Faurecia (components, 70 per cent stake), GEFCO (logistics), and Banque PSA Finance and Peugeot Citroën Retail. Over its 100-year history, PSA has undergone numerous episodes of restructuring and strategic change. In 1976 PSA was constituted from the previously independent Peugeot SA and Citroën. Prior to this, in 1974, Peugeot had acquired a 38 per cent stake in Citroën. Shortly afterwards, the company took over Chrysler’s European plants, subsequently renamed ‘Talbot’ (1978). During the 1970s Peugeot changed from a Fordist company that, up until the mid-1960s, had concentrated on produc- ing a small range of mid-size models to a more complex ‘Sloanist’ mass producer pursuing a ‘volume and diversity’ profit strategy (Loubet, 1998; Freyssenet, 2009a). ‘From 1979, PSA management had to organize a company comprising more than 30 factories that produced 26 models […] with a workforce of nearly 220,000, maintain three sales networks, and above all ensure that each of the three marques, Peugeot, Citroën, and Chrysler-Europe […] would have distinct and separate characters’ (Loubet 1998: 344). Sales fell rapidly in the wake of the second oil crisis (1979/80), necessitating a switch in strategy. In order to adjust output to declining demand and lower costs, the...
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