New PSA Boss Tavares Prepares To Rebuild Company

Cameron Aubernon
by Cameron Aubernon

Though PSA Peugeot Citroen secured funding in a three-way deal between itself, the French government and Dongfeng, new boss and former Renault COO Carlos Tavares has a hard road ahead of him as he rebuilds the ailing automaker.

Reuters reports Tavares will focus using the joint venture it shares with Dongfeng to go after 1.5 million sales by 2020, bring exports to Southeast Asia and establish a research center. He will also tighten up both working capital and the number of models sold in each market, as well as squeeze savings from PSA’s suppliers.

However, development woes, pricing issues on some models, and the use of heavy discounts and incentives are all roadblocks on Tavares’ “Back in the Race” plan expected to be issued in full Monday, as well as currency challenges in Latin America and Russia and lower-cost products from around Asia.

As part of the plan, Tavares is expected to halve the number of models it currently offers. On the bright side, the 308 and 2008 both delivered a combined 5.2 percent sales increase in the first two months of 2014, as well as an 8.5 percent Q1 2014 gain over PSA’s home market.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Gtrslngr Gtrslngr on Apr 14, 2014

    Honestly ? I wish the man the best of luck . But in light of the last 30 years - the current state of the French auto industry in general - all that my PSA insiders have been telling me for the last five years - the fact that PSA as well as Renault have lost their way completely - PSA losing their MINI engine supplier contract [ BMW is not renewing ] - as well as projects such as the CaterPine [ Caterham Alpine ] being cancelled left and right ; I'm afraid a Bat stands a better chance of surviving in Parma [ Ohio ] than PSA or Renault [ despite Renaults Nissan tie in ] has of surviving another decade . But I'll wish Mssr Tavares well regardless . Hoping for the best . But realistically expecting the worst

    • U mad scientist U mad scientist on Apr 14, 2014

      > all that my PSA insiders have been telling me for the last five years LOL.

  • RogerB34 RogerB34 on Apr 14, 2014

    Tavares Prepares To Rebuild Company but he cannot rebuild French unions.

    • Victor Victor on Apr 14, 2014

      If the french unions won't play ball, then PSA will do to France what Fiat is doping to Italy. Simple as that. PSA has strong and profitable operations in South America.

  • Victor Victor on Apr 14, 2014

    I don't think PSA will vanish - or at the very least I hope it doesn't happen, depreciation on my C3 would be even worse. But I really don't think it is time to start a death watch. At least the brands will live on under Dongfeng, if Tavares fails.

  • Stanczyk Stanczyk on Apr 14, 2014

    They still have a mess in PSA: both brands want to be premium(and they are not - Citro is closer with it's 'shmancy-fancy' DS series..[but probaby chinesse will soon decide what is 'shamncy-fancy' so..) .. They will degrade one of their brands or what ? (that would be stupid) I think Citroen is fine (they've found their own design - on the other hand Peugeot new corporate grill that looks awkward, boring and blunt !) .. How about they would start to build(again!) some cool , quirky(but elegant) automobiles('french in character') .. not another 'global products'?!? .. PS: This 'global product' corporate-attitude('one world taste' .. 'cost-cutting' mantra) must go away.. So 'Go global' but not 'global product'..('s the same problem with almost every brand today!..)

    • Nidzovski Nidzovski on Apr 17, 2014

      Nice analyze mate! PSA should definitely found their Mojo again and forget about "following trends". I mean of course they should adopt smart, and lowering costs, engineering (EMP2 platform for example) but keep their French soul and uniqueness (C4 Cactus another example).