PSA Peugeot Citroën has presented a new five-year business plan that includes a raft of new products and the aim to “transform the company in order to unleash its full potential” and grow sales and operating margin.
Included in the plan is an ambitious product blitz that will include a new 1-tonne pick-up, seven hybrids and four electric vehicles.
The plan is called ‘Push to Pass” and it follows the “Back in the Race” plan to return the group to profitability. PSA posted full-year net profit for 2015 of EUR1.2bn.
The company says the new plan includes “frugal R&D expenditure and rigorous control over production costs as well as fixed costs”. Under the plan, the group aims to reach an average 4% automotive recurring operating margin in 2016-2018, and target 6% by 2021.
It will also target revenue growth of 10% (versus 2015) by 2018 and an additional 15% revenue growth by 2021.
It says that in order to achieve these targets, the company is adapting its business model and will create more value by “optimising its existing customer base, while also expanding it through digitalisation and multi-brand offers in after-sales, leasing, used cars, mobility services and fleet management”. Selected venture capital investments will also enhance the company’s portfolio of mobility solutions, PSA says.
There will also be a planned product blitz across the three group brands – Peugeot, Citroën and DS – including 26 passenger cars and 8 light commercial vehicles, including a 1 tonne pick-up, leading to the launch of “one new car, per region, per brand and per year”.
The company also plans to launch seven plug-in hybrids and four electric vehicles, as well as deploy a connected and autonomous vehicle programme.
The plan will help to ensure profitable growth in all the regions where the group operates, it says.
PSA also announces a dividend policy from 2016 financial year based on a 25% payout ratio.
Commenting on the presentation of the “Push to Pass” plan, Carlos Tavares, Chairman of the Managing Board said: “Based on our financial reconstruction, we will launch a global product and technology offensive. 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.”