PSA Peugeot Citroen is looking to Brazil, China and Russia for salvation, as its heavy exposure to France, Italy and Spain has brought its finances in a disastrous state.
Deeply affected by the crisis in Europe, Peugeot wants to significantly reduce its dependency on European markets. PSA Peugeot Citroen CEO Philippe Varin said he wants at least half of the carmaker’s sales to be outside Europe by 2015, up from 38 percent last year.
“In view of the situation in Europe, the 50 percent objective is more pertinent than ever,” Mr. Varin said in an interview with the Financial Times. In Latin America, Peugeot is a relative newcomer trying to rival long-established brands. The French carmaker’s market share in the region fell from 5.5 percent in 2011 to 4.8 percent in 2012. All this while overall car sales in the region rose 5.6 percent.
Peugeot has a plant in Porto Real near Rio de Janeiro and a second Latin American plant in Argentina, where the company has a stronger position than in Brazil.
The alliance with GM will also help Peugeot grow in Latin America and Russia. “During our discussions there has been a very clear declaration that we are going to do things together in Latin America and Russia. That is very reassuring,” Varin said.
As for China, Peugeot targets a 5 percent share by 2015, with the carmaker being “in a good trajectory” in the world’s largest market.