GEFCO lands €8bn logistics contract with car maker PSA

Car maker PSA of France has signed a new €8bn "exclusivity" agreement with fourth party logistics (4PL) provider GEFCO to manage and optimise the automaker’s entire global manufacturing supply chain.
The five year agreement, which includes airfreight in a multimodal supply chain solution, will take effect from January 2017.
GEFCO will design and implement global logistics and transport solutions for the three PSA Group brands: Peugeot, Citroën and DS.
It will manage and optimise the entire supply chain, from sourcing components for production and assembly plants to distributing finished vehicles. In addition to these outbound and inbound logistics services, GEFCO will be responsible for distributing spare parts.
The agreement will cover around 50 countries where the PSA Group currently operates, whether in manufacturing or distribution. Its implementation will increase GEFCO’s “buying and pooling power to the benefit of all its customers”, said the 4PL.
France-based GEFCO has two shareholders: PSA Peugeot Citroën with 25%, and RZD Russian Railways with 75% of the capital.
Yannick Bézard, PSA Group’s executive vice-president, purchasing, said: “The agreement will be a powerful driver of improved operating performance at the PSA Group. We have every confidence in GEFCO’s ability to partner us as we navigate a challenging transformation, pursue new business opportunities and develop internationally.” 
The PSA Group, with €54bn of sales and revenues in 2015, is also teaming up with GEFCO to develop supply chain and manufacturing solutions for future projects, “to be carried out in collaboration with external partners or alone”.
Luc Nadal, GEFCO’s chairman of the managing board, said: “All of GEFCO’s teams are actively committed to meeting our customers’ need for efficiency. Every day, they demonstrate their ability to support our customers as they grow internationally, while working with them to tackle their long-term growth and profitability challenges.”

Share this story

Related Topics

Latest europe news

ECS Group back on the acquisition trail

The ECS Group is back on the acquisition trail following a break in activity due to the Covid crisis. The…

Read More

Share this story

Menzies expands cargo facility at Budapest Airport

Menzies Aviation has expanded its cargo handling terminal at Budapest Airport’s (BUD) Cargo City as it looks to meet growing…

Read More

Share this story

New cargo carrier FarCargo selects Nordic GSA

Recently-launched Faroe Islands-based carrier FarCargo has selected Nordic GSA as its sales agent. The GSA will offer the airline’s cargo…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.