Carlos Tavares Presents the “Back in the Race” Plan to step up the Group’s recovery
14 April 2014 - 7:48AM
Business Wire
Regulatory News:
PSA Peugeot Citroën (Paris:UG):
Carlos Tavares, Chairman of the PSA Peugeot Citroën Managing
Board, today presented the 2014-2018 “Back in the Race” roadmap
designed to accelerate the Group’s recovery, which is including
three metrics:
- Recurring positive Group operating free
cash flow by 2016 at the latest.
- €2 billion in total Group operating
free cash flow over the 2016-2018 period.
- A 2% operating margin in the Automotive
Division by 2018, with a target of 5% during the next medium-term
plan covering the period 2019-2023.
“Back in the Race” is built around four operational
objectives:
1. DS, Peugeot and Citroën, three brands that are
recognised around the world
- The development of DS as a full-fledged
premium brand will be stepped up.
- At the same time, the Group will
continue to reposition the three brands, while clarifying their
line-ups to ensure their complementarity, and will improve their
price positioning.
2. A focused, targeted global product plan more
aligned with market demand
- The Group’s line-ups will be gradually
streamlined to 26 models by 2020. By focusing on a more compact
range, PSA Peugeot Citroën will be able to improve market coverage
and improve margins by targeting the most profitable segments.
- In addition, this will help to optimise
the use of platforms and programmes around the world and to
allocate R&D spend and capex more efficiently.
3. A drive for profitable international growth
accordance with the fundamentals of the automobile business
- The Group will continue to accelerate
its expansion in China, by tripling volumes with Dongfeng in 2020
and successfully completing the development of the DS brand.
- The partnership signed with Dongfeng
will also help to drive faster growth in the ASEAN region.
- At the same time, the Group will turn
around the situation in Russia and transform the business model in
Latin America, with the objective of returning to profit in the two
regions in the next three years.
- Lastly, PSA Peugeot Citroën will seek
expansion opportunities in new growth countries, for example in
Africa or the Mediterranean basin.
- To do so, a new global organisation
structured around six major regions – Eurasia, Europe, Middle
East/Africa, Latin America, China and ASEAN, Asia-Pacific – will be
put into place.
4. Upgrading to improve competitiveness, especially in
Europe
- To address its competitiveness
challenges, PSA Peugeot Citroën has stepped up the modernisation of
its plants and will bring them in line with global benchmark
production facilities, while continuing to reduce costs and
inventory.
Continue to transform the corporate culture
The recovery is well under way, but the Group needs to develop a
real profit-driven culture and a global approach in order to return
to profit more quickly. Pursuing the cultural change already
underway at PSA Peugeot Citroën is an important prerequisite for
meeting the preceding four objectives.
In presenting the “Back in the Race” plan, Mr Tavares said:
“With this Back in the Race plan, I am committed to accelerating
the Group’s recovery by channelling all of our teams’ creative
potential so that we can quickly get back on the road to
profit.”
About PSA Peugeot Citroën
With its three world-renowned brands, Peugeot, Citroën and DS,
PSA Peugeot Citroën sold 2.8 million vehicles worldwide in
2013, of which 42% outside Europe. The second largest carmaker in
Europe, PSA Peugeot Citroën recorded sales and revenue of €54
billion in 2013. The Group is the European leader in terms of CO
emissions, with an average of 115.9 grams of CO2/km in 2013. PSA
Peugeot Citroën has sales operations in 160 countries. It is also
involved in financing activities (Banque PSA Finance) and
automotive equipment (Faurecia).
For more information, please visit
www.psa-peugeot-citroen.com
PSA Peugeot CitroënMedia: +33 1 40 66 42 00
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