More than 100 new models, increased electrification and launching Peugeot in North America are key parts of expansion strategy
The PSA Group will launch 116 new cars across its five brands –Peugeot, Citroen, DS, Vauxhall and Opel – by 2021, accelerate the electrification of its model range and launch Peugeot in the North American market as part of the second phase of its ‘Push to Pass’ growth plan.
The strategic plan, the first version of which was unveiled in 2016, is designed to turn the company into a “global vehicle manufacturer”, and the company completed the first phase by recording its fifth consecutive year of growth. Since the first plan was launched, PSA has acquired Vauxhall and Opel.
The second phase of the plan runs from 2019 until 2021, and aims to grow the company’s global presence with entry into several new markets including India, along with expanding its product range and a focus on electrification and digital technology.
“We will be continuing our Darwinian transformation and approaching each challenges as an opportunity to stand out against our competitors,” said PSA Group chairman Carlos Tavares. “Darwinian means that either we adapt and change, or we die. We will adapt, and we are now ready for change."
North America a key global growth targets
The PSA Group has set a target to increase sales outside of Europe by 50 per cent by the end of 2021. To achieve that, it plans to launch Peugeot in the North American market, Citroen in India and Opel in Russia.
Peugeot’s return to North America – giving PSA access to the crucial US market – has been planned since 2016, with the company recruiting staff recently and having worked to make its vehicles compliant with key US regulations.
The brand launched in the USA in 1958, but withdrew from the market in 1991 due to dwindling sales. It has maintained a North American presence by selling cars in Mexico, although models sold there do not meet requirements to be sold in the US or Canada.
Range expansion and electrification
The 116 models PSA Group will launch by 2021 include concepts, and are likely to include a large number of commercial vehicles, cited as a key growth target. The goal is to reduce the average age of the group’s model range to 3.5 years.
The PSA Group has recently started to electrify its fleet, developing a range of hybrid and full electric systems. The firm now aims to speed up that process, with the goal of offering electrified version of half of its range by 2021 – and across its entire range by 2025.
PSA Group also plans to offer hydrogen-powered vehicles, used in business-to-business fleets. The firm also says it will further push the development of its advanced driver-assistance systems, and its Free2Move mobility brand.
Tavares also announced a number of goals designed to boost profits and make the company more agile. This included a further reduction in its real estate assets, with the aim to cut them by a further 14% by 2021. The group has already been assessing the future of a number of its factories, including Vauxhall's Ellesmere Port facility.
The group is also aiming to massively expand its online sales programme. It sold 6000 cars last year, but wants to sell 100,000 cars online by 2021.
Record sales in 2018
The PSA Group has also announced its 2018 results. Combined, the firm’s brands sold 3.88 million vehicles, an increase of 6.8%, with group revenue up 18.9% to £64 billion.
Notably, Vauxhall and Opel recorded its first annual profit in 20 years. Tavares said the result was "historic", coming after "20 years of red ink."
Also read: PSA Group confirms launch of Citroen in India
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