PARIS - PSA/Peugeot-Citroen plans to outsource more components because of pressure on internal resources and the growing technical complexity of some parts.
'We won't outsource existing components,' said PSA purchasing director Herve Guyot. 'But with our new projects a greater proportion of components will be bought in.'
PSA has decided to buy seats for the Peugeot 307 - the successor to the lower-medium 306, due later this year - from French supplier Faurecia. Another example is a plan to outsource shock absorbers on a future project.
Shortage of internal resources to handle component development is a key factor, Guyot said.
PSA also is selling major component operations. In October, it said it would sell control of its steering systems business to Koyo Seiko of Japan. PSA's French steering component plants in Dijon and St. Etienne will be put into a joint-venture company, 51 percent owned by Koyo Seiko and 49 percent by PSA.
In November, PSA sold its La-Barre-Thomas operations in Rennes, France, to CF Gomma S.p.A. of Italy. LaBarre-Thomas supplies Peugeot and Citroen with antivibration components, seals, and water and air hoses. CF Gomma specializes in rubber components.
Guyot said PSA is outsourcing manufacturing as well as development, because it is difficult to optimize production without also taking responsibility for development.
PSA also is starting to favor the use of component modules.
'At first, we were skeptical about the benefits of simple supplier assembly of modules,' Guyot said.
But PSA executives now believe that modules with significant integration of functions and supplier input can offer cost savings.