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PSA boss outlines 2015 strategy

Christian Streiff, chairman of PSA Peugeot Citroën, has outlined goals for the company which see it, by 2010, restoring growth and profitability, selling more than four million vehicles and consolidating its leadership in environmentally friendly cars.

For 2015, the group is committed to being the most competitive carmaker in Europe. Its goal is to have an operating margin of 5.5 to 6% in 2010 and 6 to 7% by 2015.

In 2015, PSA Peugeot Citroën intends to be ‘solidly positioned in Europe, steadily growing and profitable, with extensive operations in other global markets and ranking among the leaders in each of its businesses’.

Christian Streiff defined the CAP 2010 and Ambition 2015 objectives for the Automobile Division, as follows:

  • A strong improvement in product and service quality. The challenge is to reduce the number of quality incidents by half and to shorten incident resolution times by two-thirds. In terms of service quality, the goal is for Peugeot and Citroën to rank among the European top five.

  • A European product offensive, including boosting the group’s leadership in light commercial vehicles and developing a ‘competitive premium’ model in each segment. In all, 29 product launches are planned in Europe between 2007-2010. A further objective is to maintain the average age of the line-up at three years, compared with 4.5 years in 2006.

  • A European marketing offensive to boost sales by 300,000 additional units in 2010, thanks to a specific strategy for the fleet market, specific actions in the dealerships to support the product offensive, a greater return on media spend and dealerships turned into real profit centres.

  • A cost-cutting program in order to reduce warranty costs by half, increase purchasing productivity from 4 to 6% a year, reduce overheads and fixed costs by 30%, shorten development cycles by 30%, reduce supply chain costs by 10%.
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