CEO Carlos Tavares is not happy at all with PSA’s position in Germany and an improvement on that market is mandatory and quite urgent.
Peugeot-Citroen sales and its market share are not at reasonable levels in Germany, as the company is not being able to gain customers’ confidence and to change people’s perception of its cars. Therefore, a drastic and urgent shift in PSA’s strategy it is mandatory in the country. This objective view was exposed to a German magazine by carmaker’s CEO Carlos Tavares himself. “The unsatisfactory results in Germany are apparently due to the fact that German customers are not as convinced of our products as the Spanish, French, Austrian or Dutch ones are,” automotive magazine Auto Motor und Sport quoted Tavares as saying in a recent interview. He not only said that their image has to improve in Germany, but also that the dealership network has to expand and offer better services. Both Peugeot and Citroen brands had a combined market share of about 3.3 percent in January to October this year, compared with 21 percent held by the VW brand or 7.1 percent by Opel. “I do not want to accept that as normal. We must get better in Germany,” Tavares said.
He also does not exclude the possibility for PSA to bring new investors for the company to strengthen its position, but Tavares also believes the brands can achieve a better position on the market without extra financial help. Both the French government and Dongfeng, PSA’s Chinese partner, hold matching 14.1 percent stakes in PSA following a deal to raise cash for the business. “I’ll talk to anyone. The main point is: If I am talking to someone I want to be in good shape,” he said, while adding he was currently not in negotiations with any particular party.