Peugeot pledges sales drive in new mid-term plan

[PARIS] PSA Peugeot Citroen outlined plans on Tuesday to return to consistent sales growth as the French carmaker seeks to build on its recovery from near-bankruptcy to healthy profit.

In what Chief Executive Carlos Tavares described as a "global product and technology offensive", Peugeot aims to step up model launches to introduce a new vehicle each year for each of its three brands - Peugeot, Citroen and DS - including a pickup, and 11 hybrids or all-electric cars.

Peugeot also plans production in Southeast Asia and is seeking a manufacturing partner in India, the company said.

The mid-term plan unveiled on Tuesday builds on a two-year turnaround that brought the company back from the brink to its highest profitability in 14 years, with the help of a government-led bailout.

The carmaker also pledged a 10 per cent increase in group revenue by 2018 and a further 15 per cent by 2021.

"The operative word here is the enlargement of our customer base," Chief Financial Officer Jean-Baptiste de Chatillon told reporters on a conference call.

Under Mr Tavares, former second-in-command to Carlos Ghosn at Renault, Peugeot cut 211 euros (S$326) in costs per vehicle last year.

The company has raised its savings goal to 700 euros per vehicle from 500, Mr Chatillon said on Tuesday.

REUTERS

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