Peugeot transformation driven by evolving expectations
THE PSA Group has announced its “Push to Pass” plan for the 2016-2021 period, which aims to meet customers’ mobility needs by anticipating changes in car usage patterns.
Driven by evolving customer expectations, Peugeot said the plan will transform the company in order to unleash its full potential, capitalising also on the efficiency, operational excellence and agility demonstrated during the “Back in the Race” plan.
The plan sets two objectives for the PSA Group: to reach an average four percent automotive recurring operating margin in 2016-2018, and target six percent by 2021; and to deliver 10% group revenue growth by 2018 vs 2015, and target an additional 15% by 2021.
To achieve these targets, the company is adapting its business model and will create more value by optimising its existing customer base, while also expanding it through digitalisation and multi-brand offers in aftersales, leasing, used cars and mobility services and fleet management. Selected venture capital investments will also enhance the company’s portfolio of mobility solutions.
Growth of the strong and well-differentiated Peugeot, Citroën and DS brands will be supported by:
• high-quality products and services as a basis for the brands’ pricing power;
• a product blitz, built on 26 passenger cars and eight light commercial vehicles, including a one ton pick-up, leading to the launch of “one new car, per region, per brand and per year”;
• a rich and sharp core-technology strategy, notably shaped by the launch of seven plug-in hybrids and four electric vehicles; and
• the deployment of the connected and autonomous vehicle programme.
The plan will help to ensure profitable growth in all the regions where the group operates.
Push to Pass represents a first step towards the achievement of the group’s vision to be “a great global carmaker with cutting-edge efficiency and the preferred mobility provider worldwide for lifetime customer relationship”.
PSA has also announced a dividend policy from the 2016 financial year based on a 25% pay-out ratio.
Commenting on the presentation of the Push to Pass plan, Carlos Tavares, chairperson of the managing board, said: “Based on our financial reconstruction, we will launch a global product and technology offensive. Now more agile, we are ready to … [anticipate] 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’s profitable organic growth.”
Future Peugeot models, like this Traveller, promise to meet changing customers’ needs.