The head of French carmaker PSA Peugeot Citroen told newspaper Le Figaro that job losses were likely to occur at the group.
"We have to stop our fixed costs rising. PSA has just come out from a wonderful period for hiring people and we will probably have to resolve ourselves to the fact that our headcount will go down," Chief Executive Christian Streiff said in the interview published on Monday.
Streiff said that while he was not theoretically opposed to examining acquisition opportunities, he remained "wary" of the fact that mergers often ended up failing.
He added he did not want to expand Peugeot's current alliances with other car manufacturers, and said Peugeot's main shareholders wanted the company to remain independent.
"Concerning alliances, I do not want to extend them to new partners. I would rather continue to get the most of out of the best alliances we have at the moment."
Streiff also reiterated that Peugeot had dropped talks with Malaysian carmaker Proton over a possible co-operation.