The U.S. auto industry seems to be picking up nicely, but the same can't be said for Europe. Ford just announced that it lost $100 million a month in the market over the third quarter, and PSA Peugeot-Citroën SA didn't fare much better.
Automotive News reports that the French auto conglomerate is looking to cut fixed costs by 800 million euros ($1.1 billion USD) next year, and job cuts will be part of the plan. PSA will reportedly terminate 6,000 European jobs next year, with 1,000 cuts to manufacturing, 2,500 lost contractors and another 2,500 from sales, marketing, research and IT.
The auto market in Europe has suffered from a rise in pricing pressures. PSA felt the pinch with a 1.6 percent drop in automotive revenue during the quarter. Overall revenue actually increased by 3.5 percent due to PSA's majority ownership of parts maker Faurecia SA. PSA has changed its outlook for 2011 from "clearly positive" to something closer to break even.
Automotive News reports that the French auto conglomerate is looking to cut fixed costs by 800 million euros ($1.1 billion USD) next year, and job cuts will be part of the plan. PSA will reportedly terminate 6,000 European jobs next year, with 1,000 cuts to manufacturing, 2,500 lost contractors and another 2,500 from sales, marketing, research and IT.
The auto market in Europe has suffered from a rise in pricing pressures. PSA felt the pinch with a 1.6 percent drop in automotive revenue during the quarter. Overall revenue actually increased by 3.5 percent due to PSA's majority ownership of parts maker Faurecia SA. PSA has changed its outlook for 2011 from "clearly positive" to something closer to break even.
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