"Back in the Race"
  • Register
  • Help
Results 1 to 7 of 7
Like Tree1Likes
  • 1 Post By gerry freed

Thread: "Back in the Race"

  1. #1
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default "Back in the Race"

    The new head of PSA will announce tomorrow his strategy to get PSA "back in the race" ie on a survival path.

    Advertisement
    Think Global - Ride on Spheres

  2. #2
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default

    and here is what he said...

    Free positive cash flow by 2016. 2 billion euros cumulative free cash flow during 2016-2018. 2% operational profit to 2018 with a longer term horizon of reaching 5%.

    There are four operational objects.

    1 Develop the DS marque as a premium brand on its own. In parallel, reposition the three brands to simplify the range and make them complimentary, not competitive.

    2. Rationalise down to 26 modeles in total by 2020.

    3. International. The group will continue to accelerate its Chinese growth, multiplying the volume produced with Dongfeng three fold before 2020 taking advantage of the DS brand. The partnership with Dongfeng will accelerated development in the ASEAN markets. In parallel they will sort out the mess in Russia and transform the business model in Latin America to make both zones profitable within three years. They will also be looking for new development opportunities in Africa and the Mediterranean basin. To do this there will be a new global organisation present in six major regions: Eurasia, Europe, Middle East/Africa, Latin America, China+ASEAN and Asia Pacific.

    4. Updating its services particularly in Europe, modernising its factories, moving to world's best practice, all aimed at cost and stock reduction.


    He also spoke of changing the culture, saying the enterprise had to adopt a results oriented global culture to accelerate its return to profitability. This cultural change is a key to achieving the four objectives.
    FedGrapes likes this.
    Think Global - Ride on Spheres

  3. #3
    1000+ Posts Kim Luck's Avatar
    Join Date
    Nov 2010
    Location
    Melbourne, Aus.
    Posts
    17,958

    Default

    I'm sure, that like many other managers of enterprise, we wish him all the best in his endeavours. I see he's given himself a little wriggle room with most of his objectives, and I will tip my hat to him if he makes the first of them, let alone all his others.
    Don't it always seem to go that you don't know what you've got 'til it's gone............

  4. #4
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default

    The strategy is fairly transparent. He has to get the model range down from the 90+ as much as possible in the hope of getting close to the economies of scale of the bigger manufacturers with larger volumes per model. PSA are about 9th in volume globally and with cogent arguments that only the top six will survive the decade as independant enterprises, he has a challenge.
    He has also said that he will not tackle the low-cost market and focus on prestige, which is logical as unlike Renault-Nissan, PSA does not have a low cost manufacturing location.
    Note the absence of North America in the strategy, where Renault/Nissan is well entrenched through it Nissan positioning.
    Think Global - Ride on Spheres

  5. #5
    Fellow Frogger! Decca's Avatar
    Join Date
    Jul 2004
    Location
    Canberra
    Posts
    895
    Present --2016 2008Outdoor / 2014 RAV4 Diesel (My utilitarian beast, now with A/T tyres...)

    Past -- 19?? 403 / 1974 504GL / 1972 R12TL / 1995 405SRi / 1997 406ST / 1998 306XT / 2004 406HD1 / 2008 308XSE HDi / 2008 307XSE

  6. #6
    Fellow Frogger! person s's Avatar
    Join Date
    Aug 2004
    Location
    newtown
    Posts
    127

    Default

    Quote Originally Posted by gerry freed View Post
    PSA does not have a low cost manufacturing location.
    not China? isn't there a connection with Dongfeng?
    and isn't there a factory in Chennai?

  7. #7
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default

    Dongfeng are one of the "three heads" of the PSA lion and they are not presenting themselves as a supplier of low cost cars but of perceived French quality and technology. They are partnering in the Chinese market and will expand that to the ASEAN region when capacity permits.

    PSA are not currently active in India. see
    Peugeot's India Story - What Went Wrong? | The Truth About Cars
    They had a small local assembly operation in India to make the 309 which was not a great success and did no good to the company image back in the 1990's. They tried more recently to re-enter and during the GM era, had commited to open a factory in Gujarat near where Ford are established. They ran out of cash and perhaps got negative signals from GM, failed to meet the payment scheduule to the government for the land. They then pulled out.
    Think Global - Ride on Spheres

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •