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New five year growth plan announced by PSA Peugeot Citroen

French carmaker PSA Peugeot Citroen has announced a new global plan which will see at least one car launched per brand per region per year.

The ‘Push To Pass’ plan was announced as the carmaker also rebranded as Groupe PSA and shared a vision to be “a great global carmaker with cutting edge efficiency and the preferred mobility provider worldwide for lifetime customer relationship".

It comes after Carlos Tavares, chairman of its management board, led the early completion of the carmaker’s turnaround plan.

Now Tavares’ focus is on delivering 10% group revenue growth by 2018 versus 2015, and an additional 15% by 2021, and reaching an average 4% operating margin between now and 2018 and stretching that to 6% by 2021.

A total of 26 cars and eight LCVs, including a one-tonne pick-up, are on the way. These will include seven plug-in hybrids and eight pure electric vehicles, and the group will continue development of connected and autonomous technology. Citroen will launch at least 12 new and replacement vehicles, Peugeot nine and DS five, Tavares said.

He said: "Based on our financial reconstruction, we will launch a global product and technology offensive. 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."

Groupe PSA said the plan is based on frugal R&D expenditure and rigorous control over production costs as well as fixed costs.

“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 after-sales, leasing, used cars, mobility services and fleet management,” said a spokesman. Selected venture capital investments will also enhance the company’s portfolio of mobility solutions.

The plan will help to ensure profitable growth in all the regions where the group operates, it said.

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