Priority is not volume sales, but profit, PSA Europe boss says image

After two challenging years, Peugeot-Citroen is back on track and the French auto group aims to keep its profitability, PSA Europe boss told Automotive News Europe in a recent interview.

Peugeot-Citroen has completed its turnaround plan and now the French auto group is back on profit. Its worldwide sales grew only by 1.2 percent in 2015, while in Europe, deliveries rose 5.9 percent, to 1,864,000 units, with the pace of growth picking up in the fourth quarter. The European auto market increased by more the 9 percent, making PSA’s volume trail a little behind the trend. However, PSA Europe boss Denis Martin is not concerned over the automaker’s pace, he told Automotive News Europe in an interview. “Our first priority is not only volume, it is implementing Back in the Race strategy,” he said.

The most important goal for PSA last year was the reduction of fixed costs and bringing production costs down as much as it could in Europe. As for the sales targets, “we have been the second-largest carmaker in Europe for quite some time, and it is very important to grow in each country in Europe,” Martin said. “In several countries in Europe, we are seeing profitable growth. We want to achieve that in each European country. Our priority is profit.”

But for a further growth, Peugeot-Citroen has to explore other markets as well, beside Europe and China and the next two big auto regions to be considered are North America and Iran. The comeback to the US is a crucial step and a long-term strategy, as its market is the biggest one for the premium segment, and PSA plans to push its DS upscale brand in front when it decides to make the move.

Via Automotive News