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PSA Peugeot Citroen

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PSA Peugeot Citroen

  1. 1. COMPANY’S INFORMATION  Operating income  Profit Employees Subsidiaries  (€1.416 billion) (2009)  (€1.161 billion) (2009)  186,000 (2009)  Citroën, Peugeot, Faurecia(majority stake), Gefco, Banque PSA Finance, Peugeot Motocycles, Peugeot Citroën Moteurs, Process Conception Ingénierie
  2. 2. CONTINUED  Website  Founded  Headquarters  Type:  Industry  Psa-peugeot-citroen.com  1976  16th arrondissement, Paris, France Société Anonyme (Euronext:UG) Vehicle manufacture
  3. 3. CONTINUED  Area served  Key people  Worldwide, except North America, South Asia  Philippe Varin (CEO), Thierry Peugeot (Chairman of the supervisory board)
  4. 4. CONTINUED  Products  Revenue  Cars, motorcycles, trucks  €48.42 billion (2009)
  5. 5. HISTORY :  In December 1974 Peugeot S.A. acquired a 38.2% share of Citroën  In May 1976 they increased their stake of the then bankrupt company to 89.95%, thus creating the PSA Group stake of the then bankrupt company to 89.95%, thus creating the PSA Group
  6. 6. CONTINUED  Peugeot was typically prudent in its own finances, the PSA venture was a financial success from 1976 to 1979  In late 1978, PSA purchased the failing Chrysler Europe from the troubled U.S. parent firm for a nominal USD $1.00
  7. 7. . Key Figures :  Automotive production is the core business of PSA Peugeot Citroën. Nearly 85,000 men and women working in 16 production centres (including one CKD manufacturing and shipping plant) and 15 powertrain and casting plants, together with many partners and suppliers, produced, in 2009, 3,042,400 vehicleS
  8. 8. CONTINUED  In 2009, PSA Peugeot Citroën's production sites manufactured 3,0422,400 vehicles ( 1, 739,000 for Peugeot and 1,302,900 for Citroën)  Some 13,000 vehicles are produced every day by the Group's plants, along with 11,000 engines and 12 500 gearboxes.
  9. 9. CONTINUED  Nearly 85,000 employees work in the production activity (final assembly plants and powertrain and casting plants)  The Group employs 45 ergonomists who seek to improve working conditions at PSA Peugeot Citroën sites worldwide  Since 2007, all the sites' Group received ISO 14001 certification, an endorsement of the environmental management of production activities.
  10. 10. CONTINUED  The Group's stamping plants use around 5,000 tonnes of sheet steel every year.  A manual gearbox consists of an average 300 parts - for an automatic gearbox, this number can rise to 400.  Between 1995 and 2009, the water consumption by vehicle produced was reduced more than 2,5.
  11. 11. MISSION :  The mission of PSA Peugeot Citroën production facilities is to manufacture, each day, vehicles that meet both the design teams’ expectations and customer requirements while complying with cost targets and delivery deadlines
  12. 12. COMPANIES IN INDIA  TATA MOTORS  MARUTI SUZUKI  MAHINDRA & MAHINDRA  HONDA MOTORS  94,481.34 crore (US$ 21.45 billion)  US$4.8 billion  31,957.83 crore (US$ 7.25 billion)  US$39.8million
  13. 13. Companies of U.S.A  GENERAL MOTORS  FORD MOTORS  CHRYSLER  US$ 98.7 billion  US$ 118.308 billion  US$ 17,710 million
  14. 14. COMPANIES IN JAPAN  HONDA MOTORS  TOYOTA MOTORS  NISSAN MOTORS  SUZUKI MOTORS  MITSUBISHI MOTORS  US$ 98.7 billion  ¥18.9 trillion  ¥7.517 trillion / $80.92 billion  US$ 17,710 million  ¥1,445,616 million
  15. 15. COMPANIES IN GERMANY  BMW  VOLKSWAGEN  DAIMLER AG  US$ 17,710 million  US$332.8,million  €78.92 billion
  16. 16. Selective product
  17. 17.  Manufacturer:- citroen  Assembly:- okazaki, aichi, japan(mitsubishi motors)  Production:-2007-present.  Class:- compact crossover suv  Bodystyle:-4 door-suv  Layout:- all wheel drive.  Platform:-mitsubihisi platform  Transmission:-6 speed manual.
  18. 18. SALES AND REVENUE
  19. 19. CONSOLIDATED SALES AND REVENUE BY BUSINESS (€ millions) Automobile Division  Faurecia  Gefco  Banque PSA Finance  Other businesses and Intersegment eliminations  Total PSA PEUGEOT CITROËN 2008 2009 41643 38265 12.011 9.262 3.536 2.888 2.088 1.823 (4.922) (3.851) 54.356 48.417
  20. 20. RECURRING OPERATING INCOME  Recurring operating income (€ millions)  Consolidated operating margin as a % of sales and revenue  Automobile division operating margin as a % of sales and revenue 2008 2009 550 (689) 1% 1.4% -0.5% 3.3%
  21. 21. FINANCING AND FINANCIAL SITUATION (€ millions)  Cash flow*  Capital expenditure (excl. R&D)*  Free cash flow  Net financial position  Equity  Gearing 2008 2009 2.781 1.342 1.701 1.615 (3.764) 809 (2.906) (1.993) 13.289 (12.447) 21.9% 16%
  22. 22. AUTOMOBILE DIVISION RESEARCH AND DEVELOPMENT EXPENDITURE (€ millions) 2008 2009 2.116 2.148 5.1% 5.6% € millions As a % of Automobile Division Sales and revenue
  23. 23. Brand positioning  With two strong, consistent and complementary brand identities, PSA Peugeot Citroën has what it takes to be leading world carmaker. The Peugeot and Citroën brands reasserted their personalities in 2009-2010 to reflect their own specific values and contexts while responding to customer concerns on mobility and the environment common to both marques.
  24. 24.  Since February 2009, Citroën has made "CREATIVE TECHNOLOGIE" its brand signature. Since the brand came into existence, 90 years ago, it has continually demonstrated its capacity to ally creativity and technological innovation: these values are written into its DNA. Citroën dares to imagine, invent and reinterpret the car. Technological innovation associated with creativity allows the brand to propose concrete, modern solutions for individual mobility. The "DS line" perfectly illustrates the new Citroën spirit, with products that stand out with their creativity, design intelligence and finish quality.
  25. 25.  Peugeot gets a new signature in January 2010: MOTION & EMOTION to convey its brand image project. The brand is thus allying progress and sentiment. It is always Peugeot's intent to place emotion at the heart of the motoring experience, so that a Peugeot can never be considered a merely functional vehicle. The brand is also renewing its styling, summed up by the SR1. It suggests the broad brushstrokes of what to expect from its upcoming models: the feel, the harmony, the feline grace and the dynamism. To mark its bicentenary, Peugeot is reinventing itself in the eyes of the world.
  26. 26. An efficient industrial base  In 2009, PSA Peugeot Citroën manufactured 12,350 vehicles, 9,100 engines and 10,100 gearboxes a day. With its shot of generalization the best industrial practices and its policy of platforms, the Group reduced production costs. To attain its growth objectives, PSA Peugeot Citroën has developed an industrial base of global dimensions consisting of 15 production centers (of which 6 as part of joint-ventures) and 16 power train and casting plants (engines, gearboxes, running gear, etc.).
  27. 27. To boost this industrial base, the Group has introduced a plan to improve industrial efficiency based on principles. In each of its plants, the Group works on continuously improving working conditions and ergonomics, notably by making assembly easier and by standardizing parts. The Group has also signed strategic cooperation agreements with other manufacturers. These agreements concern vehicle bases (platforms) and components (engines), produced in the plants of one of the manufacturers or in new plants
  28. 28. People  human resources strategy focuses on securing the best talent available to support our growth objectives and international development. We apply the principal components of our human resources policy in all of our host countries. Number of employees by subsidiary worldwide at December 31, 2009
  29. 29. Ambitions  Since its appointment in June 2009, the new managing board of PSA Peugeot Citroën has defined for the Group and set priorities accordingly.  Environmental performance  PSA Peugeot Citroën is a leader in low emission vehicles, which are amongst the best in the world in terms of consumption and emissions. In order to offer a "clean car" that suits the needs of each customer (extra-urban use / urban use / long range with maximum flexibility), the Group will enrich its range of low emission vehicles and technologies over the next 3 years.  For vehicles, the Group will launch :  In 2009 and 2010 : small diesel cars emitting less than 99g of CO2/km : Peugeot 207, Citroën C3 and Citroën DS3.  In 2010 an Electric vehicle in the fourth quarter.  In 2011 diesel hybrid versions of two premium models : 3008 and DS5.  In 2012 a full plug-in diesel hybrid Peugeot 3008, emitting less than 50g of CO2.  In terms of other technology, the Group will deploy in 2010 the new generation STT (Stop Start technology) across its ranges, which reduces CO2 emissions up to 15%. In 2011, PSA will launch a 1litre gasoline engine emitting less than 99g of CO2/km in small and medium cars
  30. 30. Vehicle design  .  PSA Peugeot Citroen is already a step ahead in vehicle design. Its new concepts & vehicle designs are widely respected, as witnessed by the success of recent launches like Citroën C5, Citroën C3 Picasso or Peugeot 3008.  The Group's first priority is to maintain its new model momentum across all segments in 2009 and 2010. In 2009, the Group will launch both the Peugeot 5008 and the new Citroën C3 in Europe, and a new Citroën C4 (Quatre?) sedan in China. Further new launches are planned for the first half of 2010 such as the Citroen DS3, the Peugeot RCZ in Europe, the Citroen C5 in China and the 207 Pick Up in Brazil.  The Group's second priority is to enhance the value proposition of the two brands in order to increase their pricing power. The Group's objective is also to develop a clear differentiation between Peugeot and Citroën. Having common supervision of the two brands will help to pave the way.
  31. 31. Services  To improve its performance in services, the Group has defined three priorities.  Catch up quickly on customer service, where the Group's performance is below par.  Improve the Group's financial services offer, where it has a strong position with Banque PSA Finance.  Be at the leading edge of mobility and connectivity services to meet the evolving requirements of customers. With regard to connectivity, PSA Peugeot Citroën is a step ahead in emergency call systems, with 650 000 vehicles already equipped in Europe. In mobility, Peugeot is currently testing an innovative mobility credit system with 80 000 customers in 4 major French cities.
  32. 32. International Operations: Priority Growth Regions  PSA Peugeot Citroën’s three priority growth regions are China, Latin America and Russia, which represent major drivers of the Group’s future expansion. In each one, production capacity, R&D capabilities and brand dealership networks have been strengthened to align the vehicle offering with local demand. In line with its vision of being a global automobile manufacturer, PSA Peugeot Citroën is committed to building critical mass in Latin America and Asia (beginning in China), to adapting its models more quickly to the needs of non- European carbuyers and to making its management teams more international.  China: Building critical mass in the world’s largest market  The world’s largest automobile market, China is also PSA Peugeot Citroën’s second largest market. The Group is committed to becoming one of the country’s major carmakers, with an 8% share of the market in 2015-2016. PSA Peugeot Citroën enjoyed a record year in 2009, when local sales returned to growth with a 52% increase to 272,000 vehicles. It also pursued its marketing offensive with the launch of the Citroën C4, Citroën C5 China and Peugeot 408.
  33. 33. Increasing production capacity  As part of its joint venture with Dong Feng, the Group currently has two production plants in China: Wuhan 1, whose capacity was doubled to 300,000 units a year in 2008, and Wuhan 2, inaugurated in 2009, which can currently produce up to 150,000 vehicles a day. Moreover, discussions are underway concerning the opening of a third plant. In addition, PSA Peugeot Citroën and Chinese carmaker Chang’An announced in May 2010 that they had signed a letter of intent to create a 50/50 joint venture to produce passenger cars and light ercial vehicles.
  34. 34. Virtual visit  Producing cars to meet the needs of each consumer involves a subtle alchemy between man and machine, between quality requirements and respect for the environment. It would be impossible to “virtualise” the thousands of operations and many years of experience required to produce a motor vehicle – symbol of mobility in the modern world. Nevertheless, we hope that our virtual guided tour of the key stages in vehicle manufacture will stimulate your curiosity and encourage you to visit one of the real production plants run by the PSA Peugeot Citroën Group.
  35. 35. Production  The production facilities are divided into four workshops: stamping, body-in-white construction, paint and assembly. Planning is based on firm orders from customers, which are transformed into Production Orders and then grouped and dispatched among the Group’s production facilities. Satisfying end customers Production’s ultimate goal is to satisfy the end customer as concerns the product’s aspect, services and comfort. Since manufacturing plays a key role in the Group’s brand image, each production facility contributes significantly to the strategic objective of placing each model within the top three cars in its category. The plants have to get things right the first time, which makes end-to-end control of the production process crucial. Integrating plants into the surrounding environment Controlling production processes also entails continuously improving the plants’ impact on the surrounding environment. PSA Peugeot Citroën pays particular attention to reducing emissions and effluent, to recycling industrial waste and to preserving the soil and landscape. The Group has developed an effective environmental management strategy and conducts regular programs to train employees and raise their environmental awareness. All the sites of the group are certified ISO 14001 certification, the internationally recognized standard in this area. Capacity utilization To optimize the utilization of production capacity involved in making the basic components shared by all Group vehicles, production has been organized three platforms with five more cooperation platform : two platforms in cooperation with Fiat (LCV +MPV), a platform in cooperation with Toyota (small vehicles range’s entrance), a platform in cooperation with Mitsubishi (4x4 and a platform in cooperation with Fiat and Tofas (LCV). This politics of flat shape evolves by integrating more modularity and flexibility.
  36. 36. Manufacturing plants  PSA Peugeot Citroën's manufacturing plants perform the end processes in the carmaking cycle, including stamping, body-in-white assembly, painting and final assembly. Vehicles are transferred to the marques as soon as they roll off the final assembly lines.  -  Aulnay (France)  -  Mulhouse (France)  -  Poissy (France)  -  Rennes (France)  -  Sevelnord (France)  -  Sochaux (France)  -
  37. 37.  Buenos Aires (Argentina )  -  Madrid (Spain)  -  Mangualde (Portugal)  -  Porto Real (Brazil)  -  Sevel SpA (Italy)  -  Trnava (Slovakia)  -  Vigo (Spain)  -  Wuhan (China)
  38. 38.  Component and casting plants PSA Peugeot Component and casting plants supply the Group's other plants with engines, transmissions, chassis assemblies, foundry parts (cast iron, die cast, forged) and tooling.  -  Caen (France)  -  Charleville (France)  -  Française de Mécanique (France)  -  Hérimoncourt (France)  -  Metz (France)  -  Mulhouse (France)
  39. 39. · Two innovative brands with differen ciated skills  PSA growth is driven by two complementary full-line brands with international reach : Peugeot and Citroën. Each brand markets a broad range of vehicles that meets a broad range of customer expectations
  40. 40. Environment Over the years, PSA Peugeot Citroën has gained a worldwide reputation for its environmental leadership. In 2008, fort the third year in a row, it sold more than one million vehicles emitting less than 140 g CO2/km. In order to stay one step ahead, the Group will go even further, with a fully aligned offering (improvement of internal combustion engines, EVs in 2010, then hybrids and hybrid plug-ins).
  41. 41. Road safety Road safety is also a Group priority. The emergency call system, which aims to accerlerat and improve the intervention of emergency services, is a PSA Peugeot Citroën initiative.
  42. 42. · Continuous labour-management dialogue PSA Peugeot Citroën’s human resources policy is based on professional equality, responsibility and continuous dialogue with the workforce and management.
  43. 43. · Other PSA Peugeot Citroën activities Vehicle financing with Banque PSA Finance. Automotive equipment with Faurecia. Transport and logistics with Gefco
  44. 44. 2010 Challenge Back to growth and profit 2015 Ambition Each business: •Among the best in the industry in growth and profitability • To reach the highest possible enterprise value
  45. 45. Key Drivers •Our employees’ commitment to winning •A move towards a culture of speed, action, results
  46. 46. Faurecia 2010 Challenge  3% operating margin  A cleaned-up business portfolio  A best-in-class product portfolio  A broader customer portfolio  A restructured, competitive manufacturing base  Among the best in innovation and technology
  47. 47. Continued 2015 Ambition Among the worldwide leaders in each business
  48. 48. Gefco “FORCE 10”  Significant growth, 5% operating margin  Fast geographic expansion  Broader customer portfolio  A unique automotive logistics network in Europe 2015 Ambition  European leader in automotive logistics  Increase the contribution of services to the business The preferred logistics partner of all carmakers
  49. 49. Banque PSA Finance 2010 Objectives  Maximize synergies with the Peugeot and Citroën b  Develop related services  Speed up international expansionrands 2015 Ambition  Secure growth  Remain the benchmark in profitability
  50. 50. Automotive Division From CAP 2010 …  Product and service quality  European product offensive  Competitiveness plan  International offensive … to Ambition 2015  The most competitive carmaker in Europe  The leader in environmentally friendly cars  With a broad and profitable international base Delivering long-term profit growth
  51. 51. Product and service qualityA customer-centric company Product quality  Halve the number of quality incidents  Divide by three incident resolution time Service quality  Peugeot and Citroën ranking among the European Top  A “revolution” in customer service  One back office for both brands
  52. 52. European product offensive Broaden the Peugeot and Citroën lineups  Take our share of the growing market segments  Boost our leadership in commercial vehicles  Develop “competitive premium” models in each segmen
  53. 53. European product plan New concept  Lineup extension  Model renewals  Restylings Total  Sedans  Non-sedans  Light commercial vehicles Total 2003-06 2007-10 2 5 4 5 9 18 7 1 22 29 11 9 7 14 4 6 22 29
  54. 54. European product offensive Peugeot’s powerful comeback + Citroën’s acceleration 2010 Europe  Increase the differentiation between our two brands  Add 300,000 units to 2006 sales 2015 Ambition  Offer the widest, most innovative lineup in Europe  Enhance the image value of the Peugeot and Citroën brands
  55. 55. European marketing offensive Get our share back … and make it richer  Expand in the “corporate” market  Differentiate and energize our partnership with our car dealers  Increase the return on media spend  Transform our proprietary dealerships into real profit centers
  56. 56. continued 2015 Ambition Offer the widest, most innovative lineup in Europe Enhance the image value of the Peugeot and Citroën brands
  57. 57. International offensive: Mercosur 2010 Mercosur  Double the number of model launches  to 12  Be a player in the entry-level segment  Strengthen and extend the two brands’  dealer networks  Swiftly free up additional production  capacity  Increase local content, strengthen R&D
  58. 58. continued 2015 Ambition Brazil: join the "Big 4" Argentina: become the undisputed market leader Objective: 400,000 unit sales
  59. 59. International offensive: China A new dimension through an extended geographic coverage 2010 China  JV with Dongfeng  Start-up manufacturing facilities on the East cost  Renew the Peugeot and Citroën lineups  and double the number of model launches to 12  China Business Unit  Develop R&D and styling centers  Strengthen purchasing  Feasibility study for a JV with Hafei  Extend product coverage to 80% of the market  3rd plant in the South
  60. 60. continued 2015 Ambition Become an established, profitable industry player Objective: 1 million units in the medium term
  61. 61. International offensive New growth regions Russia Plant search underway 2010 objective: 100,000 units (300,000 in the medium term)
  62. 62. CONTINUED India & Mexico  Strategic assessment underway
  63. 63. Product strategy Competitive premium Entry-level Distinctive cars in each The competitive model segment whenever necessary Core models (Sedan – Non-sedan) A strengthened presence in growth segments
  64. 64. The leader in environmentally friendly Cars Facts  A major competitive advantage for PSA Peugeot Citroën  The best CO2 performance in Europe:  • 1 million vehicles sold < 140g/km (in 2006)  • Of which 500,000 < 120g/km  HDi + biodiesel: as environmentally friendly as gasoline hybrids  Stop & Start: available on the C3 since 2004  2 million DPF-equipped vehicles  World’s largest diesel engine manufacturer with Ford  The world’s best gasoline engine technology with BMW
  65. 65. continued Objectives  Strengthen our leadership position: o A strengthened engine strategy o Extensive deployment of hybrid technologies  • Micro Hybrid: 1 million Stop & Start units sold in 2011  • Mild Hybrid: roll out in 2010 in the mid-range o • Full Hybrid: market launch of the Hybrid HDi in 2010 30% biodiesel: compatible with all our engines o Bioethanol offer: wherever needed  Gain at least 10g/km of CO2 in Europe
  66. 66. Submitted by : Harpreet Kaur MHS1007008 MBA -1

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