In December 1974 Peugeot S.A. acquired a 38.2% share
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
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
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
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
Nearly 85,000 employees work in the production
activity (final assembly plants and powertrain and
The Group employs 45 ergonomists who seek to
improve working conditions at PSA Peugeot Citroën
Since 2007, all the sites' Group received ISO 14001
certification, an endorsement of the environmental
management of production activities.
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.
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
CONSOLIDATED SALES AND
REVENUE BY BUSINESS (€ millions)
Banque PSA Finance
Other businesses and
Total PSA PEUGEOT CITROËN
RECURRING OPERATING INCOME
Recurring operating income
as a % of sales and revenue
as a % of sales and revenue
AUTOMOBILE DIVISION RESEARCH
As a % of Automobile
Division Sales and
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.
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
The "DS line" perfectly illustrates the new Citroën spirit,
with products that stand out with their creativity, design
intelligence and finish quality.
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.
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
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.).
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
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
Since its appointment in June 2009, the new managing board of PSA Peugeot
Citroën has defined for the Group and set priorities accordingly.
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
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
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.
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.
International Operations: Priority
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.
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
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
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
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.
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.
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.
Buenos Aires (Argentina )
Porto Real (Brazil)
Sevel SpA (Italy)
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.
Française de Mécanique (France)
· 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
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).
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.
· Continuous labour-management
PSA Peugeot Citroën’s human
resources policy is based on
responsibility and continuous
dialogue with the workforce
· Other PSA Peugeot Citroën
Vehicle financing with Banque PSA
Automotive equipment with
Transport and logistics with Gefco
Back to growth and profit
•Among the best in the industry in growth and profitability
• To reach the highest possible enterprise value
•Our employees’ commitment to winning
•A move towards a culture of speed, action,
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
Among the worldwide
leaders in each business
Significant growth, 5% operating margin
Fast geographic expansion
Broader customer portfolio
A unique automotive logistics network in Europe
European leader in automotive logistics
Increase the contribution of services to the business
The preferred logistics partner of all carmakers
Banque PSA Finance
Maximize synergies with the Peugeot and Citroën b
Develop related services
Speed up international expansionrands
Remain the benchmark in profitability
From CAP 2010 …
Product and service quality
European product 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
Product and service qualityA
Halve the number of quality incidents
Divide by three incident resolution time
Peugeot and Citroën ranking among the European
A “revolution” in customer service
One back office for both brands
European product offensive
Broaden the Peugeot and Citroën
Take our share of the growing market segments
Boost our leadership in commercial vehicles
Develop “competitive premium” models in each
European product plan
Light commercial vehicles
European product offensive
Peugeot’s powerful comeback
+ Citroën’s acceleration
Increase the differentiation between our two brands
Add 300,000 units to 2006 sales
Offer the widest, most innovative lineup in
Enhance the image value of the Peugeot and
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
Offer the widest, most
innovative lineup in Europe
Enhance the image value of the
Peugeot and Citroën brands
International offensive: Mercosur
Double the number of model launches
Be a player in the entry-level segment
Strengthen and extend the two brands’
Swiftly free up additional production
Increase local content, strengthen R&D
Brazil: join the "Big 4"
Argentina: become the undisputed
Objective: 400,000 unit sales
International offensive: China
A new dimension through an extended
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
Feasibility study for a JV with Hafei
Extend product coverage to 80% of the market
3rd plant in the South
Become an established, profitable
Objective: 1 million units in the medium
New growth regions
Plant search underway
2010 objective: 100,000 units
(300,000 in the medium term)
India & Mexico
Strategic assessment underway
Competitive premium Entry-level
Distinctive cars in each The competitive model
segment whenever necessary
(Sedan – Non-sedan)
A strengthened presence
in growth segments
The leader in environmentally
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
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
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
Submitted by : Harpreet Kaur