PSA/Peugeot-Citroen expects to sign two more cooperative agreements with other automakers this year, adding to its deals with Toyota and Renault.
Denis Monguillet, director of UK purchasing for PSA, would not reveal the likely partners. But he said the agreements would be made before the end of 2002.
PSA and Toyota will break ground this month on a joint-venture plant in Kolin, Czech Republic, where they plan to build a new small car. PSA is also developing a transmission with Renault.
Speaking at the International Automotive Conference in Sunderland, England, Monguillet said PSA also plans to hold online auctions valued at E1.2 billion this year. To date, PSA has held online auctions worth E300 million.
'We like the idea of online auctions, but they are not that easy to put into place,' Monguillet said. 'They have to be very carefully organized with suppliers to ensure that everyone knows exactly what is happening.'
PSA's e-business approach was shaped by its plans to:
* Produce 25 new models by 2004.
* Shorten development cycles from three to two years.
* Increase its European market share.
* Expand internationally into Asia, South America and eastern Europe.
'This has led directly to our current collaborative agreements with Renault and Toyota,' Monguillet said. 'The challenge with e-business is to integrate worldwide suppliers, ensure projects are competitive in terms of technology and cost, encourage and integrate supplier innovations, and bring suppliers into the group's modular design strategy.'
Meanwhile, Renault will be ready by the end of the year to use electronic marketplace Covisint with all its suppliers, said Laurent Bourrelier, Renault vice president business to business.
'Auctions are only a negotiating tool,' Bourrelier said. 'We will not modify our partnership strategy and we will use only approved suppliers.'
It is important to be ethical in the use of e-auctions and not use them for testing the marketplace or for 'ruthless re-sourcing' Bourrelier said.
Renault expects to handle E2 billion of purchasing via e-auctions this year, or about 5 percent of total purchasing.