The French maker Peugeot-Citroen revealed its growth targets for the 2016-2021 timeframe, expecting challenging times in terms of profits because of upcoming investments in technologies and models.
After PSA’s “Back in the Race” plan had a better-than expected outcome, returning profit way ahead of schedule, the French automaker is now focusing on its newer “Push to Pass” strategy for the 2016-2021 timeframe. The company aims to reach an average of a more conservative 4 percent automotive recurring operating margin in 2016-2018 and targets 6 percent by 2021, while plans to boost by 10 percent the Group’s revenue in two years, eyeing an additional 15 percent increase by the end of the timeframe. However, Chief Executive Carlos Tavares said that these goals would not be so easy to hit as: “based on frugal R&D expenditure and rigorous control over production costs as well as fixed costs, the plan raises the bar for PSA.” In 2015, the automaker posted a full-year net profit of 1.2 billion euros, reversing a 555 million loss in 2014. Last year, Group’s recurring operating income more than tripled to 2.7 billion, with a total revenue of 54.7 billion euros and a 5 percent operating margin.
The CEO said Peugeot-Citroen aims to launch “one new car, per region, per brand and per year”, also planning production in Southeast Asia and in India, where the Group seeks a partner. There were many rumours recently about a US comeback and many expected from PSA to announce the launch of its upscale brand to North America, but the company has another strategy in mind. Peugeot will take its first steps toward an eventual return to the US by launching a car-sharing service there in 2017, Tavares said. In this direction, a partnership with Paris electric car-sharing operator Bollore is under consideration.