PARIS -- PSA/Peugeot-Citroen has established a 40-person task force in its purchasing division to monitor financial problems at suppliers. The French automaker will spend more than 2 billion euros during 2009 to help cash-strapped partsmakers survive the continuing downturn, manufacturing director Roland Vardanega said during last week's annual shareholder assembly.
The French carmaker's planned assistance will come in various forms, including:
A 200 million euro contribution to a French government-run fund to modernize automotive equipment manufacturers (FMEA)
Up to 1.3 billion euros in savings for suppliers because of reduced payment delays
A 330 million euro contribution to a capital increase recently floated by subsidiary supplier Faurecia.
Vardanega told shareholders that PSA has "made a concerted effort to help its suppliers," but warned that "we cannot do everything ourselves."
"Our suppliers' management teams and shareholders also have a role to play," Vardanega said.