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27 October 2011
| Adam Leach
manufacturer PSA Peugeot Citroën will work with
suppliers to mitigate the impact of natural disasters on its supply chain.
The car giant,
which reported that supply chain issues and rising input costs contributed to a
drop of 1.6 per cent in automotive revenues, will roll out a plan requiring vendors
to have alternate sources of supply in different countries.
The strategy is
in response to disruptions experienced after the Fukushima earthquake earlier
this year. PSA Peugeot Citroën’s third
quarter results, published yesterday, said: “The group confirms the negative
impacts over the full year of €250 million (£219
million) from the aftermath of the disaster in Japan.”
plan during a conference call, Philippe Varin, chairman of the managing board, said:
“We have been hit by the Fukushima disaster so we have a plan in the company to
Under the plan
“all the suppliers” that source from just one plant would be required to identify
an additional source in a different country. The plan has been finalised but
will be rolled out gradually. “We have a roll out planned for the next few
years because it cannot be done overnight,” he said.
As a result of an
interruption in the supply of screws in September, production across Europe was
hit and 45,000 fewer vehicles were produced. And high raw material prices
resulted in the company having to spend €700 million (£613 million) more
to the drop in revenues Peugeot Citroënhas
agreed on a plan to cut costs by €800 million (£700 million). A statement announcing the plan has been approved,
explained that measures will include the loss of an estimated 2,500 jobs and a reduction
in IT costs. The statement also said the company would look to “leverage the benefits of the relationships forged with its
strategic suppliers”. Further details are not yet available.