PSA Peugeot Citroen European business remains loss, but its Chinese joint venture is under pressure.
Yesterday, an officer of DPCA told reporter that board of director assess sales and profit together before, but now it only assesses sales and market share. Its parent company PSA wants to release its finance dilemma by business loss.
PSA lost 5.01 billion Euros in 2012, which is rarely to see. What’s worse, PSA auto business revenue has kept decline and decrease 5.8% to 8.03 billion Euros.
With the background, DPCA, PSA Chinese joint venture, will take more missions. DPCA propose “Double in Three Years Plan” in 2013. It plans to double DPCA sales to 800 thousand in 2015. Meanwhile, DPCA initial its new Powertrain strategy, Dongfeng Peugeot Mount Blue Plan, Dongfeng Citroen Fly Dragon C Plan, and builds engine plant and auto manufacture plant in Hubei Province.
Besides, DPCA propose “Duel- 4%” index, which means to cut 4% cost and increase market share from 3.6% to 4%. Dong QIU, general manager of DPCA said that “those figure growth and making true will help PSA release its employment and operation assessment pressure.”
DPCA is definitely an important unit of PSA global business. In the first half this year, DPCA revenue is 13.15 billion Yuan, and net profit is 752 million Yuan, annual profit will mount to 1.6 billion Yuan. It is the only profit realizing market for PSA global. As sales, DPAC has old 440 thousand at the end of Oct this year, and sales of the first 9 months increase 27.89% over last year, which is 10% faster than industry average. It is expected that annual sales will be 550 thousand.
“DPCA profit cannot make up PSA lose, but Kovalam put more attention on global business structure balance.” Some inner people close to PSA Asia said.
With its rapid and high sales requirement, Dongfeng Peugeot and Dongfeng Citroen of DPCA start theirdealers development plan. As reporter know from Dongfeng Peugeot that the brand want to enlarge its network to 500~ 550. But at the beginning of 2012, DongfengPeugeot national wide dealers were 300.
“We almost have our new 301 and 2008 rolled off, and those two cars aim second, third even fourth tier cities. And we will deep our channel at the same time.” Dongfeng Peugeot staff said. Dongfeng Peugeot new network is mainly located in 24 provinces and 140 cites in China. Take Gansu for an example, Dongfeng Peugeot new net spots locate in Jiuquan, Baiyin, Pingliang and Qingyang. Less of 10% spots are in first tier cities like Guangzhou.
