Peugeot chief executive Christian Streiff said the firm was reacting to the "collapse" in Europe's car market.

BBC: Peugeot to launch 'massive' cuts

Mr Streiff promises to rethink such taboos and present the results of his inquiry early next year.

ECONOMIST: Airbus and EADS

Rather than engaging in such power struggles, however, the German government should be helping Mr Streiff with his restructuring.

ECONOMIST: Airbus and EADS

Mr Streiff made himself especially unpopular when he said it would take 15 years to get Airbus back on track.

ECONOMIST: Airbus

As Mr Streiff pointed out this week, Airbus must also catch up with Boeing in product development, cutting its lead-time for new aircraft from seven to five years.

ECONOMIST: Airbus and EADS

But Mr Streiff's room for manoeuvre is constrained by politics.

ECONOMIST: Airbus and EADS

Dominique Strauss-Kahn, a Socialist candidate for the French presidency, has said that rather than slashing costs, Mr Streiff should hire more workers in order to make up for the delays.

ECONOMIST: Airbus and EADS

"Massive production cuts will be made in the fourth quarter, as it is vital that we are correctly positioned to face 2009, " said Mr Streiff, although exact details were not available.

BBC: Peugeot to launch 'massive' cuts

So Airbus's new boss, Christian Streiff, must slash costs.

ECONOMIST: Airbus and EADS