PARIS, Jan 28 (Reuters) - French auto maker PSA Peugeot Citroen said on Tuesday it expects to make annual savings of one billion euros by 2006 thanks chiefly to its industrial savings plan.
In slides to be presented to a meeting of analysts and reporters by CEO Jean-Martin Folz, PSA said its so-called share platform strategy, which involves sharing parts across model lines, had already helped reduce costs per vehicle by 300 euros.
PSA said it expected to further reduce the cost of vehicles by 150 euros by 2006, taking savings between now and then to 800 million euros a year.
In addition, further manufacturing improvements would generate extra annual savings of around 350 million euros by 2006.
"Together these initiatives are expected to generate more than one billion euros a year in savings by 2006," the slides said.