PSA Group outlines five-year plan

PSA Group (formerly PSA Peugeot Citroen) has revealed its plan for growth over the next five years, which includes a swathe of new passenger and light-commercial vehicles, a one-tonne ute and eleven electrified vehicles.

Dubbed the Push to Pass strategy, it aims to maximise profitability across PSA Group's three brands – Peugeot, Citroen and DS – while expanding and diversifying its model range.

At the top of the wish-list for Australia is the yet-to-be-specified one-tonne pick-up, which GoAuto has previously speculated could be built in collaboration with Toyota's HiLux. Toyota and PSA currently have a light-commercial partnership in European markets, with a jointly-developed mid-size van sold under the Citroen Jumpy/Dispatch, Peugeot Expert and Toyota Proace monikers.

Sime Darby Motors Group PR and communications manager Tyson Bowen said the mid-size van is being under investigation for the Australian market, but it is unclear if it would have a Peugeot or a Citroen badge.

“The joint-venture Toyota Peugeot-Citroen vehicle is currently being looked at for Australia, so we're having those discussions,” he said.

Mr Bowen also said that a one-tonne ute would be a great fit in a market, given the market share of light-commercial pick-ups in Australia.

“We certainly think it would be a great vehicle to have in the local market here, given how buoyant that segment is, but at the same time it would be too early to commit to anything like that given that we learned about it last night – the same time as everyone else did.”

Other potential partners include Fiat, which also has an existing light-commercial relationship with PSA, and Mazda, which is looking for a partner for its next-generation BT-50 ute.

The one-tonner is one of 26 passenger cars and eight light-commercial vehicles to be rolled out by PSA Group over the next five years, which will include seven plug-in hybrids and four fully electric vehicles.

It is unclear whether PSA Group plans to roll out the new range of electric vehicles and hybrids in its passenger-car range, through some of its light-commercial models – something it has done on the past with the fully electric Peugeot Partner van in European markets – or with future performance cars.

At the 2012 Paris motor show Peugeot showed off the Onyx hybrid concept, a supercar that teamed a 3.7-litre diesel V8 with a 60kW electric motor, combining for a huge 574 kW, while at last year's Frankfurt show the car-maker revealed the Fractal, a diminutive fully electric sportscar concept that employed two motors and a lithium-ion battery for a combined output of 150kW.

Earlier this year DS previewed the striking E-Tense electric concept at the Geneva show, a two-door coupe with a 300kW/516Nm electric motor that could potentially represent a halo model for the recently independent premium brand.

As GoAuto has previously reported, DS is aiming to release its first all-new independently-built model in 2018. It is unclear whether this will be a halo model based on the E-Tense or the Divine concept from the 2014 Paris motor show, or an SUV, possibly a developed market version of the China-only 6WR.

As part of its new product push, PSA Group plans to release “one new car, per region, per brand, per year”, meaning Australia can hope to get three new models per year – one each from Peugeot, Citroen and DS. Whether these will be all-new models, facelifts, or model-year updates is yet to be determined.

As well as growing its range of models, the Push to Pass strategy also details how PSA Group plans to expand financially.

It plans to deliver 10 per cent revenue growth by 2018 compared with its 2015 result and then increase that by an additional 15 per cent by 2021.

It also aims to reach an average 4 per cent automotive recurring operating margin in 2016-2018, and target 6 per cent by 2021.

The “automotive recurring operating margin” refers to solidifying PSA Group's financial backing in order to invest money back into the company to help develop new technologies and products.

“The last two years, the Back in the Race plan, which was phase one of the new PSA Group, (its aim) was to return the balance sheets to the black. They've achieved that, now its how do they provide themselves with a solid financial backing so that they can then continue to grow and re-invest in the products and brands and technology,” said Mr Bowen.

“When we took over the distribution of Citroen, the overarching aim was to enact efficiencies and all of the other elements with the business – that's occurred. Now it's how do we structure the business for the future, so that each of the three brands can legitimately hold their own in the market, and offer something either different or complimentary through those.”

PSA Group chairman of the managing board Carlos Tavares said that Push to Pass will better help the car-maker connect to its customers while establishing financial growth.

“Based on our financial reconstruction, we will launch a global product and technology offensive,” he said. “Now more agile, we are ready to shift paradigms by anticipating changes in car usage patterns. Our digital transformation will make the PSA Group a company connected to its customers.

With Push to Pass, we will ensure PSA profitable organic growth.”