PSA Peugeot Citroën announces plans to streamline its model range in order to regain profitability
14 April 2014

PSA Peugeot Citroën will axe more than 40 per cent of its models by the year 2020 as part of its group recovery programme.

Company chief Carlos Tavares said the models will be “gradually streamlined” over the coming years, a move that will allow the firm to focus more profitable segments.

Tavares said that reducing the company's model portfolio from 45 to 26 will allow the firm to improve market coverage and optimise the use of vehicle platforms to allocate research and development spend more efficiently.

Tavares also revealed PSA will further develop DS as a “full-fledged” premium brand. DS, alongside Citroën and Peugeot, will be repositioned to ensure the ranges of the three brands ranges are complementary.

Tavares made the announcement as he outlined the firm’s 'Back in the Race' roadmap. PSA bosses say the plan is an effort to regain a recurring positive cashflow by 2016 and €2bn in group operating free cashflow over the 2016-2018 period. The firm has also targeted a two per cent operating margin in the automotive division by 2018, growing to five per cent between 2019 and 2023.

PSA said it will continue to accelerate expansion in China by tripling volumes with joint-venture partner Dongfeng in 2020 and growing the DS brand. It said it will return its Russian and Latin American operations and will “seek expansion opportunities” in new regions, including Africa and the Mediterranean basin. 

In order to address what Tavares described as "competitiveness challenges”, PSA will accelerate its modernisation of its production plants in an effort to reduce costs.

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Comments
23

14 April 2014
I see Citroen being a more budget orientated brand, with the C-Cactus signalling their development direction, Peugeot a more traditional brand based on the more understated appearance of the 308 and 508 with perhaps a few larger cars and DS being the funky fun premium offering. There's potential there, particularly for Citroen - really looking forward to trying a C-Cactus.

14 April 2014
Citroen only had one standard C4 on their Geneva stand, so I wouldn't be surprised if we see that and the C5 axed before too long. I reckon the C1, C3, C4 Picasso, C4 Cactus will remain for Citroen, with 108, 208, 2008, 308, 3008, 5008 and RCZ remaining for Peugeot. We shall see what happens! I think Citroen want to be careful with the DS range, though. I think there's risk of it becoming too Chinese-orientated. I know it's doing well there, but the point of it is French luxury, not Chinese brash. Hopefully they won't lose the plot.


"Work hard and be nice to people"

14 April 2014
They're likely to follow other manufacturers, such as Renault-Nissan, and axe the D segment C5 and 508. De facto replacements being the DS5 and 5008 crossover. Have a range of A-B-C segment hatchbacks and crossovers.

The days of Peugeot being the French Mercedes, and Citroen selling big comfortable barges are over.

14 April 2014
In my opinion Citroen should follow the DS route only with extended variants of the DS 3, 4, 5 (and 6) models. I would leave the various C and other models - cars, utility and commercial vehicles to fold and and merge with the Peugeot range.

This would clearly differentiate the two brands, one being premium and the other mainstream

14 April 2014
I hope they dont axe the larger models altogether. Perhaps they only need one version of the C5/508, but they still should offer a bigger car. Also the Chinese like big saloons, so its not just here we would miss them.

They dont need both 108 and C1, and the C3, C4 and C3 picasso are all effectively replaced with the new Cactus. They dont need the 5008, the C4 Picasso does that job better.

The RCZ, DS3 and DS5 should all stay. Do they sell any DS4s?

Is there room for something bigger than 508? We have seen Chinese show cars that are bigger, both Saloons and SUVs.

14 April 2014
Had the misfortune of having that as hire car in spain few weeks ago. What an utter heap of junk that was to drive.

I think the issue with half these car manufacturers is there advertising is a little blurred. I'd imagine citroen a selling it on where they see it. If it was sold as a complete budget car i could accept. Last thing you want is the ride quality of being lashed on bouncy castle.

14 April 2014
I'm really pleased there seems to actions in place to get the PSA group back on track. Always had a soft spot for them, first car was a 106 back in 1998. Two years free insurance was perfect for an 18 year old!

Smilerforce wrote:

Had the misfortune of having that as hire car in spain few weeks ago. What an utter heap of junk that was to drive.

I have a year old C4 and it is not a ball of fire to drive, granted, but neither should it be. If I wanted a sports car, I would have bought a sports car. I do high miles for work (I've done 7k in less than 3 months since I got it) and what I like about the car is that it is extremely quiet, the ride is smooth (small patter at high speeds sometimes), the cabin is comfortable and well built, and economy is excellent.

15 April 2014
superstevie wrote:

I'm really pleased there seems to actions in place to get the PSA group back on track. Always had a soft spot for them, first car was a 106 back in 1998. Two years free insurance was perfect for an 18 year old!

Smilerforce wrote:

Had the misfortune of having that as hire car in spain few weeks ago. What an utter heap of junk that was to drive.

I have a year old C4 and it is not a ball of fire to drive, granted, but neither should it be. If I wanted a sports car, I would have bought a sports car. I do high miles for work (I've done 7k in less than 3 months since I got it) and what I like about the car is that it is extremely quiet, the ride is smooth (small patter at high speeds sometimes), the cabin is comfortable and well built, and economy is excellent.

You don't need to buy a sports car?! I'm not sure what the resale value of the car, but my assumption would be that you bought purely for price? But there are plenty of cars that good high milers that id probably buy older if price is issue.

economy ill give you that ... cabin was average, ride quality was below average, build quality not bad. It just put me off driving if I had to put up with that on a weekly commute.

14 April 2014
No doubt the slow selling C5 will finally meets its end, and with it the superb Citroen Hyrdractive system, aka the hydropneumatic suspension of Citroens glory days.

What a great shame to see that go, it was so much better than the air based self-levelling used by many premium marques, IMHO.

I still miss my last C5, a 3.0 V6 model with all the toys. I don't miss it's shoddy build quality mind!

14 April 2014
Dear prospective buyer.......

We have noticed that you are interested in one of our cars. As you already know our resale values are one of the lowest in the market and our firm's reputation is right now facing a new bottom.

In light of these circumstances we would like to inform you that if you were still about to buy any one of our cars, its highly likely we will discontinue it over the next 5 years. Happy buying!!

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