French car maker PSA Peugeot-Citroen (UG.FR) Wednesday said it has appointed Gregoire Olivier to oversee the group's efforts to heighten its profile in Asia.
The appointment, part of a broader management reshuffle, is part of Peugeot-Citroen's strategy of shifting the focus of its business away from the mature market in Europe, where it sells two-thirds of its vehicles, and developing sales in fast-growing markets in Asia and other emerging markets.
Europe's second-largest automotive group after Germany's Volkswagen AG (VOW.XE) said in a statement that Olivier's appointment and several other senior management changes are designed "to reinforce both its management's global dimension and its operational efficiency."
Olivier up to now has been responsible for overseeing Peugeot-Citroen's automobile strategy and programs.
He will guide the company's efforts to carve itself a large slice of the fast-growing Chinese market that's expected to keep growing at a double-digit pace in the foreseeable future.
He'll also work on extending the company's presence in Southeast Asia and oversee relations with Mitsubishi Motors Corp. (7211.TO). Peugeot-Citroen has industrial partnerships in four areas with Mitsubishi and is looking to deepen its relations with the Japanese car maker.
Olivier's appointment "clearly signals the importance we're giving to our development in India, China and Southeast Asia," said Peugeot-Citroen Chief Executive Philippe Varin. "It's an important message," he added in an interview with Dow Jones Newswires.
At present, Peugeot-Citroen has a Chinese market share of just over 3%. Varin recognizes that isn't enough to amortize distribution and marketing costs, and wants to raise his company's Chinese market share to a level closer to 10%.
Olivier, who will relocate to Shanghai, will oversee the company's plan to ramp up its Chinese production. It already has two plants in a joint venture with Dongfeng Automobile Co. (600006.SH), and is working on another Chinese joint venture with Chang'an Automobile Group to make light vans.
On Tuesday, Peugeot-Citroen announced a plan to create a range of entry-level vehicles that will be specifically aimed at winning market share in fast-growing emerging market countries.
Varin said that the company's operations will gradually become less dependent on Europe. "Fairly quickly, our activity in Europe and growth markets will become balanced," he said. He declined to give a time frame for when that will happen.
Other management changes announced Wednesday include the appointment of Jean-Christophe Quemard, currently in charge of purchasing, to look after Peugeot-Citroen's vehicle programs.
Jean-Marc Gales, currently head of the Peugeot and Citroen brands, will also be responsible for marketing and product operations.
The style and projects operations will be part of a research and development division managed by Guillaume Faury.
Frederic Saint-Geours remains chief financial officer and head of strategic development.
