PARIS -- PSA/Peugeot-Citroen will boost its purchasing from low-cost countries during 2009 to cut costs.
We are moving toward another dimension in the process, PSA Purchasing Director Jean-Christophe Quemard told Automotive News Europe. Before we concentrated on local sourcing. Now we are doing global purchasing from low-cost countries, Quemard said.
Quemard took over PSAs 30 billion purchasing department in January 2008 with a mandate from CEO Christian Streiff to increase the level of low-cost country sourcing.
One year later, Quemard says the French carmaker is on track to source at least 40 percent of all car components in low-cost countries in 2010.
On the projects that are being approved and launched today, we are going to grow the importance of competitive sourcing and we are going to meet this objective, he said.
Quemard declined to detail PSAs current low-cost sourcing ratio or the percentage of the carmakers 24 billion parts purchasing budget that is sourced from developing countries.
In 2006, the last year such information was published, PSA spent about 13 percent of its total purchasing budget with suppliers based outside western Europe.
The move toward PSAs 40 percent goal has been partly delegated to purchasing agents outside France.