Volkswagen AG is currently the top European automaker and also the second largest global auto company, so the ambitions of the CEO of the second largest European auto producer are definitely high.
Carlos Tavares, the new PSA Peugeot Citroen chief executive is aiming the product portfolio and soon to become three brands group to directly compete with Volkswagen’s AG core brand – the namesake Volkswagen.
The move is part of the revival strategy envisioned by Tavares and dubbed the “Back in the Race” plan. The new CEO, who came from the No.2 position at the biggest French rival Renault, sees the Peugeot brand transformed from a mass-market to a top of the range volume carmaker – with prices in Europe as high as those set by Volkswagen.
According to Tavares, this pricing strategy would aid the automaker’s return to profitability, as he evidenced that today’s net pricing for Peugeot models are on average 6.5% smaller than of comparable VW models. The plan is to close the gap successively, to 4.7 % by 2016 and to 0-3% in 2020.
He also added that some of the Peugeot models currently on sale – like the 308 compact, 208 subcompact or 2008 small crossover SUV are already on par with their respective VW models in terms of quality and available technology.
Via Automotive News Europe