French fightback

PEUGEOT and Citroen plan a massive new model offensive over the next three years aimed at slashing the average age of their fleets from 4.5 years currently to just three years.

The bold plan will see some 29 new model launches in Europe alone between 2007 and 2010 – including new entrants in “non-sedan” growth segments.

A total of 53 new models are planned worldwide by 2010, with 12 planned for China and another 12 for South America.

Some of the new releases will be diesel hybrid cars, which the company will begin to release from 2010 as part of a program designed to make the company the leader in environmentally friendly cars.

From 2011, it expects that one in four of its vehicles will also feature emissions-saving “Stop & Start” technology that was developed for hybrids, which permits the engine to switch off automatically when the car stops and start again at the press of the accelerator.

Development cycles across the board are to be shortened by 30 per cent.

The company also plans to greatly improve its quality image by reducing the number of faults by half, while also halving warranty costs. It also aims to rise in service quality rankings by reducing incident resolution times by two-thirds.

PSA Peugeot Citroen chairman Christian Streiff revealed these plans as part of an ambitious blueprint for the French car company titled “Strategy and Ambition for 2010-2015”.

Mr Streiff said the strategic plan will make PSA Peugeot Citroen the most competitive car-maker in Europe.

It projects an additional 300,000 sales in Europe and a further 400,000 internationally by 2010, taking its annual sales to four million vehicles a year. Further growth is expected in the following five years to 2015 through new joint-venture manufacturing deals that will increase sales in China to one million units.

The PSA blueprint comes in two stages called “CAP 2010” and “Ambition 2015”.

Other objectives outlined in the plan include: • Developing a “competitive premium” model in each market segment in Europe, with differentiated models for each brand

• A cost-cutting program to reduce overheads by 30 per cent, including a 10 per cent cut for suppliers

• Development of “flexible and modular platforms” to support the ambitious new model programs

• A doubling of sales in the Mercosur region (Brazil, Argentina, Uruguay and Paraguay) to 400,000 with a dozen new models, including a new entry-level car

• New Chinese manufacturing facilities with joint-venture partner Dongfeng Motor by 2010 and a possible third plant in the south in partnership with local carmaker Hafei

• Establishment of R&D and styling centres in China

• Selling 100,000 vehicles in Russia in 2010, then increasing rapidly to 300,000

• Reducing its average CO2 emissions in Europe by at least 10g/km

• Widespread availability of engines that run on 30 per cent biodiesel

• An operating margin of between 5.5 and 6.0 per cent by 2010, ending a four-year decline for the Group, rising to 7.0 per cent by 2015.