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.