PARIS (Reuters) - PSA Peugeot Citroen (PA:PEUP), an icon of French motor manufacturing, is to move out of its Paris headquarters in 2017 to a location in the city's western suburbs as part of a cost-saving push under its new part-Chinese ownership structure.
Peugeot France director Xavier Duchemin revealed the decision on Wednesday on the sidelines of a New Year press conference at the building on Avenue de la Grande Armee, near the Arc de Triomphe monument.
Peugeot's 19th century origins are in eastern France. It moved into the white, rectangular block facing onto one of the capital's busiest roads in its 1960s heyday as it enjoyed international success with its 404 model.
The family-run group went on to buy rival Citroen in 1976 and the European activities of U.S.-based Chrysler two years later.
Problems digesting the Chrysler acquisition and fearsome competition in the sector saw a business that made its first motor vehicle in 1889 lose traction over the next decades.
It sold the building in 2012 for 245.5 million euros (192.37 million pounds) to raise cash as the international auto industry crisis tipped it into a loss and has held it on a renewable lease since. With the Citroen headquarters in Northern Paris also set to close, some 2,200 people will move to two locations west of Paris.
Peugeot sold 15 percent of the company apiece to Chinese carmaker Dongfeng (HK:0489) and the French state last year in a 3 billion euro rescue share issue after racking up losses of 7.3 billion in two years. The Peugeot family still holds a matching 15 percent stake.
Peugeot's arch-rival Renault (PA:RENA) is headquartered in Boulogne just outside Paris.
(Reporting by Gilles Guillaume; Writing by Andrew Callus; Editing by James Regan)