psa peugeot citroën production facilities is to manufacture

8/10/2019 PSA Peugeot Citroën Production Facilities is to Manufacture

http://slidepdf.com/reader/full/psa-peugeot-citroen-production-facilities-is-to-manufacture 1/7

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

In 2013, Citroën further expanded its international presence and confirmed its move up the value

chain with DS, which is recognised for its premium positioning, and the Citroën range, which began a

renewal in 2013 that will pick up speed in 2014.

THE GLOBALISATION PROCESS CONTINUES

In 2013, PSA Peugeot Citroën stepped up deployment of its international expansion strategy with

the goal of enhancing the Group’s growth in high-potential markets such as China, Latin America and

Russia, as well as in the Mediterranean Basin

BLUE HDi : A BRAND NEW TECHNOLOGY FOR REDUCING NITROGEN OXIDES (NOx)

Blue HDi, which includes a Selective Catalytic Reduction (SCR) after-treatment system integrated in

the exhaust stream before the additive-technology particulate filter (DPF), eliminates more than 90%

of tailpipe NOx emissions and further reduces CO2 emissions at the same time (by up to 4%

compared with current diesel engines). This technology complies with the future Euro 6 standard

and brings diesel emissions down to the same level as petrol engines. Introduced on the Peugeot

508 and Citroën C4, Blue HDi will be extended across the entire Peugeot and Citroën diesel line-up in

2014

PETROL ENGINES:

CONTINUOUS IMPROVEMENTS

Integrating the most advanced environmental technology, the high-performance, compact and

modular EB Turbo PureTech petrol engine will enable PSA Peugeot Citroën to strengthen its

leadership in low-carbon-emission vehicles. This new three-cylinder engine, available in 1.2 THP 110

hp and 1.2 THP 130 hp versions, will be produced in France in early 2014 and in China for the local

market starting in 2015. It will play a critical role in driving the Group’s international expansion.

WITH GENERAL MOTORS TAKES SHAPE

The Alliance agreement between PSA Peugeot Citroën and General Motors, signed in February 2012,

took shape in 2013 as synergies were adjusted and projects were launched to share platforms, pool

supply chain operations and set up a joint purchasing organisation. General Motors’ decision to sell

its recent stake in PSA Peugeot Citroën does not affect the Alliance, which is based on a balanced

division of responsibilities.

Logistical cooperation agreement with Gefco

The logistics agreement signed in 2012 between General



Motors and PSA Peugeot Citroën to improve operating efficiency and reduce costs came into effect

in 2013. As part of this agreement, most of the logistics operations, in particular, of Opel/Vauxhall

and Cadillac in Europe (including Russia) will be transferred to Gefco

Tangible step

The Alliance partners have confirmed their continued cooperation in Europe to develop two vehicles

on PSA platforms, one for the B-MPV segment and the other for the C-CUV segment.

PSA Peugeot Citroën and General Motors are also working together to develop a new B-segment

commercial vehicle based on the latest generation PSA platform. The first vehicles to come out of

the Alliance should be on the market as from 2016. In addition, production of the jointly developed

vehicles will be divided up more evenly. The B-MPV segment vehicles will be made at the General

Motors plant in Zaragoza, Spain, while the future C-CUV-segment models will be made at the

PSA Peugeot Citroën plant in Sochaux, France. Both manufacturers’ models will be clearly

differentiated and fully aligned with their respective brand identities. The vehicles produced inZaragoza are expected to reach the market in late 2016.



http://psa.publispeak.com/sustainable-development-and-annual-report-

2013/com/ipedis/publispeak/client/contents/pdf/Sustainable_development_and_annual_report_20

13.pdf

SWOT ANALYSIS Dec2013

Peugeot is engaged in the design, development, manufacturing and sale of passenger cars; lightcommercial vehicles; scooters and motorcycles.The group is one of the leading automotivecompanies in the world holding significant market share in the industry. Leading market positionenhances the brand image and makes the group's entry into new markets easier and helps inincreasing the customer base. However, intense competition presents a significant risk to the group'sability to enhance its revenue per vehicle and maintain its market share.

http://psa.publispeak.com/sustainable-development-and-annual-report-2013/com/ipedis/publispeak/client/contents/pdf/Sustainable_development_and_annual_report_2013.pdf









3 shared projects

The B-MPVs from both companies will be built in the GM Spain plant in Zaragoza and the future C-

CUVs in the French PSA Peugeot Citroën plant in Sochaux.

Additionally, the partners will cooperate on new generation products in the light commercial vehicle

B-segment, which are based on a PSA Peugeot Citroën new generation platform.

A balanced division of roles and responsibilities will allow each partner to derive the greatest benefit

from this collaboration.

The first jointly developed vehicles will be launched in 2016.



“The alliance between PSA and GM is based on a balanced approach,” GM Europe boss Karl-Thomas Neumann said in a

statement.

“The vehicles of both manufacturers will be highly differentiated and fully consistent with their respective brand

characteristics.”

.The two will also share manufacturing-- with each firm producing one vehicle for the other.

Another significant area of the alliance is shared purchasing, which should help both firms reduce costs.

The two firms have canceled plans to develop a new family of three-cylinder engines together.

They have also canceled plans to develop a new subcompact platform together, and GM said it sold its 7 percent

stake in PSA for $250 million.

Why Form This Alliance?

The goal is to save money by splitting development costs, purchasing parts from suppliers together, and

perhaps consolidating European production.

GM’s European arm, Opel, has been a money-loser for years, while its sales have dropped. Peugeot is

hanging on as the second-largest automaker in Europe, but sales are weak and it owes a fortune in debt.

Peugeot came close to a similar deal with Mitsubishi Motors two years ago.

The hope is that GM and Peugeot working together will be better able to compete with Volkswagen, Kia, and

Hyundai—all of which are making big investments in Europe.

Dongfeng Motor to Buy Stake in Peugeot for 800 Million Euros

Dongfeng will buy 524 million euros of Peugeot shares at 7.50 euros apiece and the rest through a

rights issue, with the French government expected to do the same, the Wuhan, China-based

company said in an exchange filing today. The deal will give Dongfeng and the French government

holdings of 14 percent apiece, while the Peugeot family’s stake will be diluted to 14 percent from

the current 25.5 percent, a person familiar with the matter said before the announcement.

The move could ultimately bring lower prices for fleet operators, says Fleet Logistics.

Each company will continue to market and sell its vehicles independently and on a competitive basis.

GM will pay about €320 million for a 7% stake in PSA, making it the second-largest shareholder of the

Paris-based company after the Peugeot family.

GM and PSA Peugeot-Citroën will share selected platforms, modules and components on a worldwide

basis, in order to achieve cost savings, gain efficiencies, leverage volumes and advanced technologies,

and reduce emissions.

Permits both companies to execute Europe-specific programs with scale and in a cost effective

manner.

The alliance enhances but does not replace either company’s on-going independent efforts to return their

European operations to sustainable profitability.

http://www.motorauthority.com/news/1089087_gm-gives-update-on-psa-peugeot-citron-alliance



http://www.motorauthority.com/news/1081268_gm-and-peugeot-revise-alliance-deal-plan-new-engines







total synergies expected from the alliance are estimated at approximately £1.25 billion annually

within about five years

OBJ of alliance

Alliance allows both PSA and GM to save around €1 billion in a fully implemented state in around fiveto seven years’ time.

Allows GM to ultimately produce Opel cars in PSA factories – especially since PSA is also suffering

from underutilization of factories.

Help the two manufacturers pass more discounts on to international fleets.

GM is strong all around the world, but not in Europe. (less than three years after it was rescued from

bankruptcy by a US government cash injection)

Peugeot, in contrast, is weak all around the world, though in Europe it has done much to cut costs, improve

manufacturing processes and diversify with new products. (cut back its research and development activities,

reduce its marketing budgets and scale back its international ambitions after enduring a 500m euros)

A problem facing both companies is the way the European markets are expected to be under pressure for

some time.

Problems:

They both lose money in Europe. The issues they face may not be fixed by teaming up.

Can’t restructure independently. We see no reason why putting PSA and Opel together would speed

up the process of plant closures, as both have excess capacity.

Failed to end losses in Europe after extensive cost-cutting programs. Political interference and strong unions have hampered both companies from shutting factories and

laying off workers to rein in costs.

Cutting investment

Reduce investments and marketing spending as part of a goal of saving 1 bill ion euros, an

increase from a previous 800 million euros.

aims to sell 1.5 billion euros in assets to reduce debt, which widened to 3.4 billion euros in 2011.

The lack of distinctive models has eroded market share for the two groups.

PSA's share in Western Europe slumped to 12.6 percent in 2011 from 13.7 percent last year (2011) after its

sales in the region fell 8.8 percent.

Opel and Vauxhall's share slipped to 7.3 percent from 7.4 percent. The GM brands controlled 12.6 percent of

the market in 1993.

psa peugeot citroën production facilities is to manufacture

Documents