11 February 2009 | Jake Kanter
The PSA Peugeot Citroën Group will work closer with suppliers after receiving a ?3 billion (£2.7 billion) loan from the French government.
The carmaker promised to collaborate with vendors to develop cleaner, more fuel efficient and affordable vehicles.
Peugeot Citroën also said it was speeding up payments to suppliers to assist them during the downturn, although it did not specify details of this plan.
The company revealed today that its sales and revenue dropped 7.4 per cent last year to just under ?54.4 million (£48.9 million).
This week French president Nicolas Sarkozy pledged loans totalling ?6 billion (£5.4 billion) over five years to Peugeot Citroën and Renault to help them weather the financial crisis and fund green manufacturing projects. As part of the financial support, the two companies' suppliers will receive ?600 million (£540 million).
"I welcome this commitment since it gives us the assurance that an acute but temporary crisis will not destroy part of our industrial base and our auto industry skills," Sarkozy said.
Meanwhile, the Renault Nissan Alliance hopes to save ?750 million (£675 million) over the next year through improved procurement and more investment in products and technology.