PSA Peugeot Citroen announces “Back in the Race” roadmap – will cut model range from 45 to 26 by 2020

PSA_Peugeot_Citroen_Back_in_the_Race

There’s no denying that the PSA Peugeot Citroen group is hurting in Europe – its market share in its home continent has narrowed from a semi-healthy 12.8% in 2007 to just 10.9% last year. But worry not, PSA aficionados, as there’s a new man with a plan heading the show now, in the form of the group’s new CEO, Carlos Tavares.

The 55-year-old Portuguese is an engineer by training, but he’s also a an accomplished racing car driver. He joined the PSA group following a long 33-year tenure at French rival firm Renault, where he started off as a test driver. There, he led the successful revival of the second-gen Megane (which evolved into the legendary RS 230 R26), and even introduced the Renault Alpine A110-50 concept to the world in 2012.

Now in charge of both Peugeot and Citroen, Tavares has presented a new “Back in the Race” plan – a near-term roadmap to step up the PSA group’s recovery, especially in Europe. The extensive four-part strategy focuses on minimising losses while increasing profitability across all brands. Easier said than done, this.

Most drastic of all is the group’s intent on gradually streamlining its product range, effectively cutting the currently bloated stable of 45 different models down to just 26 by 2020. A more focused global product plan that is more aligned with market demand will not only improve margins (by targeting more profitable segments), but also cut down on R&D spend as well (by optimising the use of platforms).

Through this recovery plan, the development of the DS line into a full-fledged premium brand will be stepped up. It will then head PSA’s new three-tier market approach (Citroen, Peugeot, DS, in order of price and prestige), giving each brand a distinct identity to complement, rather than compete with each other.

Also in the framework are continued developments of new plug-in hybrid and four-wheel-drive powertrains to increase product competitiveness. If everything goes to plan, PSA Peugeot Citroen will truly be back in the game. There’s a lot riding on this, Mr Tavares.

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Hafriz Shah

Preferring to drive cars rather than desks, Hafriz Shah ditched his suit and tie to join the ranks of Malaysia’s motoring hacks. A car’s technical brilliance is completely lost on him, appreciating character-making quirks more. When not writing this ego trip of a bio, he’s usually off driving about aimlessly, preferably in a car with the right combination of three foot pedals and six gears.

 

Comments

  • Amirzaheenminhaj on Apr 15, 2014 at 5:46 pm

    Mr. Paul… We the news of when the new 308 be coming to Malaysia… Please do keep us updated on this matter.. We need that more

    Like or Dislike: Thumb up 3 Thumb down 3
    • slk3879 on Apr 15, 2014 at 7:23 pm

      Don’t get over excited. I doubt we will get a decently spec 308 at reasonable price if the recent peugeot launches is of any indication

      Like or Dislike: Thumb up 3 Thumb down 0
    • Hyundai DeLa Junk (Member) on Apr 16, 2014 at 5:28 pm

      The French are so stupid. They are only good doing perfumes eg Cartier and fashion. As for cars, they are a failure. In Europe, people look down on French cars like Peugeot, Citroen and Renault. But in Malaysia, the dealers here make you think French car is so special.

      The biggest joke is Peugeot in Europe. Everybody laughs at the car.

      Like or Dislike: Thumb up 1 Thumb down 2
  • kadajawi (Member) on Apr 15, 2014 at 8:35 pm

    The PSA range is bloated? Where? All the cars they do make make sense, they need A segment, B segment, C segment, D segment for each brand (except A for DS). Then the obligatory MPV that is a bestseller in the Citroen range. Mini MPV, SUV, a few commercial vehicles… I could cut back a few models, but not 20 or so.

    Like or Dislike: Thumb up 1 Thumb down 2
    • kadajawa (Member) on Apr 16, 2014 at 11:15 am

      It took Proton 6 car lineups to fight off Perodua’s 3 car lineups yet still Proton losing more market share.

      A true epic automotive joke!

      Like or Dislike: Thumb up 4 Thumb down 0
  • SohaiNajib on Apr 16, 2014 at 10:27 am

    At least the French have a plan, just look at the lazy malays controlling proton.

    Like or Dislike: Thumb up 6 Thumb down 5
    • cendol (Member) on Apr 16, 2014 at 10:55 am

      They have a plan too. They are thinking what to eat/drink later when they get home. That’s their plan

      Like or Dislike: Thumb up 7 Thumb down 0
  • cendol (Member) on Apr 16, 2014 at 10:54 am

    Proton and Perodua should cut their variants from 46 variants for a car model , to maybe 20 enough

    Like or Dislike: Thumb up 4 Thumb down 0
  • intermilan on Apr 16, 2014 at 12:42 pm

    In the official presentation slide, PSA did mentioned briefly but clearly of the initiative to expand in ASEAN market as one of key initiatives in this “Back in the Race” roadmap.

    PSA had previously never (in their annually, half-yearly or quarterly performance / financial presentations) highlighted ASEAN specifically as potential expand market in high regards. ASEAN was never a priority. All this while, it have been about China, China, China and then Europe, Russia and Latin America.

    Wonder what do they have in mind for ASEAN?
    One thing for sure, it will be done through DongFeng.

    Full PDF presentation slide here:
    http://www.psa-peugeot-citroen.com/en/finance/financial-publications

    Like or Dislike: Thumb up 0 Thumb down 0
  • thebugbud on Apr 16, 2014 at 5:01 pm

    Whatever it is, P1 and P2 are never in the race. May be only in kampung race..

    Like or Dislike: Thumb up 1 Thumb down 0
 

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