Peugeot are set to halve their vehicle line-up by 2022 in order to recover their profits and are looking for a 2% operating margin by 2018.
The PSA Peugeot Citroen Group is the second biggest automobile manufacturing company in Europe and the new plans were announced yesterday by their CEO Carlos Tavares.
As mentioned above, they are looking to almost halve their range by 2022 with an aim of reducing their model line-up from 45 to 26. They are also looking to make the Citroen DS range into its own premium brand in order to get the company back into profit.
Last year saw operating losses of £866.13 million (1.042 billion euros) and the PSA group brought in Tavares in March to try and change things around. This change has also saw the Chinese automobile manufacturing company Dongfeng Motor Corp and the French government buy a 14% share in the company.
Bringing in both of these will end Peugeot's 118 year control of the company as they will have an equal 14% share now. The money invested by both Dongfeng and the French government will contribute about half the money to the new proposed plans.
Tavares had this to say about the reorganisation taking place at the company: “What we’re going to stop is a mindset where in order to cover fixed costs, we’re going to sell cars at a loss. The profit culture is something that we need to put ahead of everything else. It’s not going to be a big-bang story, It’s going to be: do the right cars. Once the right cars are highly appealing, show them to the appropriate investors. A premium brand is a matter of decades; it’s not a matter of years.”
Do you own a Peugeot vehicle?
If you own a Peugeot vehicle and are looking for replacement parts you are certainly in the right place. We have a vast network of UK Breakers with parts available for all makes and models at incredibly low prices. Check out our Peugeot parts page to begin your parts search.