Recently, stake holder of PSA has approved 3 billion euros capital increase, which smooth the cooperation of France Government and Chinese Dongfeng Automobile Group. TANG Weishi, new CEO of PSA has announced “BACK IN THE RACE” plan to take back PSA to profitability. Chinese market plans an important role. TANG Weishi joins Biejing Auto Exhibition of year 2014 by himself, and stand for PSA stage himself. It explains everything.
TANG Weishi, just after 2 weeks appointment, has published PSA development strategy for year 2014 to 2018—BACK IN THE RACE to response for 2 years huge loss.
The strategy includes 3 indexes. Cash flow of regular business shall turn to positive not late than year 2016. Free cash flow of group operation shall reach 2 billion euros during year 2016 to 2018. In year 2018, the gross profit of finished automobile shall reach 2%, and middle term goal shall be 5% which covers year 2019 to 2023.
Besides, it is the first time to make sure that DS becomes the third brands with Citroen and Peugeot of PSA, and is the only high-end brand. It stresses that DS is the only brand that PSA shall invest more resource into and develop more modes for it.
The key for Chinese market is the triple capacity increase of cooperation between PSA and Dongfeng. According to the plan, DPAC, the joint venture of PSA and Dongfeng shall realize 1.5 million car sales up to year 2020. Dongfeng Peugeot and Dongfeng Citroen shall take about 1 million car sales. Dongfeng owned brand shall take another 500 thousands sales. It is obviously that TANG Weishi has abandoned Valin 5% market share goal, and instead with more directly sales goal.
TANG Weishi stands for Citroen this year at Beijing Auto Exhibition. The first SUV concept car of Dongfeng Citroen is a single of PSA in China. With the BACK IN THE RACE plan initialing, it shall be the most new cars introducing year for PSA, which reaches 14 new cars. It includes 6 new cars of Citroen, 6 new cars of Peugeot and 2 new cars for DS. What’s moreinteresting, there are as many as 6 new cars of the 14 new ones. There isPeugeot 2008, middle size SUV Peugeot 6008 which shall launch market at the end this year, small SUV of Citroen share platform with 2008.
