PARIS (Bloomberg) -- PSA/Peugeot-Citroen plans to merge the national subsidiaries of its two main brands in European countries as part of a broader strategy to reduce costs.
The Peugeot and Citroen brand offices in Germany will be among the first to merge, while the carmaker's Swiss subsidiaries will soon merge in Geneva, where Citroen is already located.
Citroen spokeswoman Valerie Gillot said other national subsidiaries will follow as part of the automaker's policy to find synergies. "Local entities will communicate at their pace in each country they're located," she said.
PSA is taking measures to cut costs and raise cash as vehicle sales fall in its core European market.
The automaker signed an agreement earlier this month to sell its 48-year-old headquarters in Paris as part of a broader effort to raise cash and decrease its growing debt pile.
Last month, the company also completed a 1 billion-euro share sale through which General Motors Co. took a 7 percent stake in the French automaker as part of an alliance between the two companies.
Sales of Peugeot and Citroen passenger cars fell 17 percent in the first three months in the EU and EFTA countries in a market down just over 7 percent, according to industry association ACEA.
Automotive News Europe contributed to this report