Peu­geot trans­for­ma­tion driven by evolv­ing ex­pec­ta­tions

The Witness - Wheels - - INDUSTRY -

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.”

PHOTO: SUP­PLIED

Fu­ture Peu­geot mod­els, like this Trav­eller, prom­ise to meet chang­ing cus­tomers’ needs.

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