PSA Peugeot Citroen has committed to maintain its R&D spend for this year at €3.5 billion, despite a sharp decline in sales of its vehicles. Priorities for its R&D work will change, however, to focus more heavily on vehicles with hybrid and electric powertrains.
PSA expects car sales in Europe to fall by a further 20 per cent in 2009, but to stabilise in 2010. Savings will come from reducing inventory and minimising its cash consumption, rather than engineering cutbacks.
PSA Chairman Christian Streiff said: "We intend to maintain investment and expenditure on R&D this year. We have to prepare for the future by targeting our development at new vehicles and environmental solutions to ensure sustained and profitable growth once this crisis is behind us."
PSA is focusing development on a multipurpose plug-in hybrid electric vehicle platform, in which some batteries are removed to install a small fuel-efficient internal combustion engine. The remaining batteries give a range of 50km before the engine must power the car.
The company will also continue work on the second generation stop-start systems it plans to roll-out across its range next year. Hybrid diesels are still on course for introduction in 2011.
