PSA mulls single structure for Peugeot, Citroen brands-paper

PARIS, Jan 7 (Reuters) - France's largest carmaker PSA Peugeot Citroen (PEUP.PA) may adopt a single commercial management structure for its twin Peugeot and Citroen brands, weekly magazine Challenges reported.

Following last month's departure of Gilles Michel, head of the smaller Citroen business, parent PSA may pool procurement, promotional activity and overseas units in a bid to save costs amid grim market conditions, Challenges said, without naming its source.

A Peugeot spokesman said he had no comment to make on the article, to be published on Thursday.

Michel was picked in December to manage French state bank CDC's strategic investment fund and PSA said its Chief Executive Christian Streiff would take his place at Citroen for an interim period.

On Monday, French auto manufacturers' association CCFA said passenger car sales fell 15.8 percent in December, but PSA's sales fell 0.9 percent compared to a 19.9 percent drop for domestic rival Renault (RENA.PA).

(Reporting by Matt Gil; editing by Elaine Hardcastle)