Breaking: Peugeot might go slow on its India plans!

The Euro crisis, it appears is rearing its ugly head once again, and this time around, French Automaker Peugeot-Citroen might go slow on is India plans. Peugeot is said to be putting its Indian plans on hold, marking a dramatic move of sorts since there has bee a lot riding on Peugeot’s Indian operations, nearly a billion US dollars for starters. Peugeot had zeroed in Gujarat to set up a manufacturing unit by investing INR 4,500 crores, a plan which could now be put off until Peugeot’s economic situation improves. This move comes on the back of Peugeot struggling at the hustings in Europe with flagging sales.

2012 Peugeot 508 Sedan

Recently, Peugeot-Citroen had also announced a slew of measures to cut costs and trim down its workforce in Europe. The French automaker is also said to be planning to shut down its Mumbai office, in a bid to rationalize expenditure. Just last week, Peugeot exited the 2012 World Endurance Championship, which includes the prestigious LeMans 24 hours endurance race, citing economic troubles in Europe for its decision. This latest move could mean that both the 508 sedan and the 208 sedan, cars that Peugeot was planning to launch in India, could be delayed by many months or even years.

2012 Peugeot 208 Hatchback

Going forward, Peugeot might enter a joint venture with an local company to reduce its capital outlay and exposure, as and when it decides to go ahead with its Indian plans. In the 90s, Peugeot’s alliance with Premier ended with the French company retreating after the alliance collapsed due to labour anf financial trouble. The automaker is yet to come out with an official announcement regarding these latest developments. That said, Peugeot Citroen’s Press Relations Officer, Jonathan Goodman, has come up with a terse statement which sounds quite ominous,