In 2014, PSA Peugeot Citroën revealed its “Back in the Race” roadmap, aimed at restructuring its operations in order to become a leaner, more profitable company. The French conglomerate claims that it is now in fitter shape, and has revealed a new “Push to Pass” transformative five-year plan to capitalise on it – the company aims to meet the mobility needs of its customers by anticipating changes in car usage patterns.
With the plan, PSA is setting some ambitious targets, including an average automotive recurring operating margin of four percent between 2016 and 2018, and six percent by 2021. It also aims to deliver a 10% growth in group revenue by 2018 compared to 2015, and an additional 15% by 2021. These targets are based on frugal R&D expenditure and control of production and fixed costs.
To achieve these lofty goals, PSA is revising its business model, creating more value from the optimisation of the existing customer base, as well as its expansion through digitalisation and multi-brand offers in aftersales, leasing, used cars, mobility services and fleet management. Its portfolio of mobility solutions will also be enhanced through selected venture capital investments.
In addition, PSA is focusing on growing its Peugeot, Citroën and DS brands through a product blitz that will see the launch of 26 passenger vehicles and eight light commercial vehicles, which will lead to “one new car, per region, per brand and per year.” Among these, a one-tonne pick-up truck has been confirmed, to battle the likes of the Ford Ranger, Toyota Hilux and Mitsubishi Triton.
It’s unlikely that such a vehicle will be built in-house, as the volume won’t be able to justify the investment. If PSA decides to capitalise on its current partnership with Toyota (which has spawned the the Toyota Aygo, Citroën C1 and Peugeot 108 city car triplets, as well as the Toyota ProAce, Citroën SpaceTourer and Peugeot Traveller vans), the new Peugeot and/or Citroën-badged pick-ups could utilise the platform of the new Hilux.
Also included in the plan is the launch of seven plug-in hybrids and four electric vehicles, although it is unclear if they will be standalone models or variants of existing vehicles. The development of a connected and autonomous vehicle programme will also be pursued, along with a range of high-quality products and services that will become the basis of the brands’ pricing power.
All in all, “Push to Pass” will help the group achieve profitable growth in all regions it operates in, and is a first step towards attaining its vision of becoming “a great global carmaker with cutting edge efficiency and the preferred mobility provider worldwide for lifetime customer relationship.”
“Based on our financial reconstruction, we will launch a global product and technology offensive,” said chairman of the managing board Carlos Tavares. “Now more agile, we are ready to shift paradigms by anticipating changes in car usage patterns. Our digital transformation will make the PSA Group a company connected to its customers. With “Push to Pass”, we will ensure PSA profitable organic growth.”
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Hey Jon, would a collaboration between PSA and Mitsubishi for the pickup truck be an option as well? As both groups are currently producing the ASX/4008/C4 Aircross trio and previously they had the Outlander/4007/C-Crosser trio.
You’re forgetting the i-ON/i-MIEV. But then again they’re also collab-ing with Toyota (C1/108/Aygo)
Still hoping for Citroen to make the successor to the C5/C6. And I’m still bummed that they are scrapping the Hydractive system.