By on April 5, 2016

PSA Peugeot

Forget all about PSA Peugeot Citroen. It’s dead. Well, the name, anyway.

As part of its five-year corporate strategy, dubbed “Push to Pass,” the French automaker is rebranding itself as Groupe PSA and dropping hints of a tentative return to the U.S. market.

PSA’s sales and profitability are growing again thanks to a new product strategy and a bailout by the French government, but CEO Carlos Tavares wants to see more gains by branching out into new markets.

Groupe PSA

Tavares outlined the details of Push to Pass in Paris today, stating that the automaker will introduce a flood of new vehicles while also investing in plug-in and electric vehicle technology. Over the next five years, the company plans to bring to market 26 new passenger cars and eight commercial vehicles, as well as seven plug-in models and four EVs.

By 2018, PSA hopes to increase volume by 30 percent and post 10-percent revenue growth (15 percent by 2021). PSA raised its operating profit target to six percent of sales by 2021, up from five percent this year and two percent just two years ago.

With seemingly every automaker dipping its toe into the mobility services market, PSA isn’t willing to be left out of the action, and might seek out partnerships to make it happen.

The automaker wants to become a mobility operator by next year, possibly through a collaboration with French EV builder and car-sharing supplier Bollore.

Tavares said car-sharing program, or perhaps a leasing program that keeps ownership of the vehicle in the hand of PSA, might make it to U.S. shores if the venture works out in France. Even then, PSA’s presence would be limited and regional.

As part of its growth strategy, PSA wants to draw 20 percent of its revenue from high-end products. The automaker recently turned its DS range into a standalone luxury brand that will be introduced in select overseas markets, with a U.S. trip not out of the question.

A decision on whether DS will enter the U.S. market won’t happen until next year.

[Source: Automotive News]

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34 Comments on “New Name, New Frontiers For PSA Peugeot Citroen...”

  • avatar

    If they offer something with a hydropneumatic suspension, I’m buying one.

  • avatar

    A tall, tall order, this. I guess we will have to see the upcoming lineup but I’m struggling to see how they can profitably expand into the US on the back of a mainstream lineup. A lot of the profit in the US auto market comes from infrastructure inertia, low residuals and funny money financing…. 3 things PSA will not have for quite some time.

  • avatar
    SCE to AUX

    Note to Groupe PSA: Learn from Fiat; avoid the US market.

  • avatar

    It’s bad enough that they ruined the Citroen emblem by switching to those wimpy boomerangs – now they have to change the corporate name, too?

    As cool as it would be to have a couple of their models here, I think they’d have worse luck than Fiat. This market is already crowded, and I don’t think their cars would stand out.

    When they were here before, they sold weird, cool French cars like the DS, and the 504. They’re not that weird anymore.

  • avatar

    They are going to need a new engine for the US market. The DS5 and DS6 could make it in the US; the DS4 maybe; the DS3 probably not at all. Can they colocate with something existing with dealership/service networks? Jaguar-Land Rover or Volvo maybe? Are they going to haul these things in from France or China?

    There’s enough snob+quirk appeal if it’s hauled in from France, sold at the Jaguar dealer, and it’s got a 300 HP twin turbo I-4.

    • 0 avatar

      “sold at the Jaguar dealer”

      There’s a reliability image proposition if I ever saw one.

      Get your new Peugeot at Jaguar-Land Rover of Houston. Built by the French, serviced by indifferent Jaguar techs. Everybody gets rich!

      • 0 avatar

        I know anecdotal evidence isn’t really evidence at all, but, having married a woman that owned a Citroën, resulting in me now owning half a Citroën, I feel compelled to chip in. The Citroën in question is a 2010, manual, C3, 1.6 litre, 90 hp diesel. In 95 000 km it has had *furiously knocking on wood and crossing fingers* two problems, 1) a handbrake that had to be adjusted due to a slight squeal when the car was serviced, and, 2) a rear parking sensor that acted up but has since healed itself. Living in Sweden, where the amount of salt on the average road exceeds the amount of asphalt 2:1, I was expecting copious amounts of rust, but, not a spot.

        Now we’re looking for something new, looking at used Jaguars, might be pushing our luck to far.

        • 0 avatar

          90hp. So basically it’s a faster than average riding lawnmower.

          • 0 avatar

            Speedy it’s not! But it has no problem keeping up with traffic or maintaining decent highway speed (120-140 km/h), could use a sixth gear though. But no doubt it’s something of a French penalty box, but *knock on wood* an amazingly reliable French penalty box.

            Oh speaking of speedy, when in Italy I rented a Fiat 500 1.2 with some sort of automatic transmission, I was overtaken by semitrucks on the highway going up hill, that was quite the experience.

  • avatar

    I don’t buy their return here. It would be devastatingly expensive and (IMO) not worth it to become a bit player like Volvo or Fiat.

    • 0 avatar

      Volvo had the US as its biggest market for decades. Then they decided to drop wagons…they’re still hurting, but my perception is things are pointing up. The XC90 is a success and the V90 might become one, too. “Polestar” has acquired quite the name recognition among enthusiasts.

      I’m not saying PSA might pull the same trick, but I don’t think Volvo is losing money in the US anymore.

      • 0 avatar

        Think how many years Volvo was losing money hand over fist before they started to make a little bit again. And they’re still very much a bit player even though they never pulled out of the US, and went under once.

        Now multiply that by about 5x in difficulty for a French company just starting out in the US after 25+ years absence.

    • 0 avatar
      SCE to AUX

      Volvo is still flirting with unviability in the US market. Q1 was OK, but basically a copy of Q1-2012.

      They’re around 5000-6000 vehicles/month. Alarms start going around 5k/month, and the death slide begins around 3k/month. This is how it went for Suzuki and Saab before they bailed out.

      Mitsubishi has recently rebounded to around 8k/month and growing.

      Premium brands can make do with less, as can those with rich parent companies. Fiat is only surviving in the US, for example, because Jeep is printing money.

      As for Volvo, in spite of the hailed-as-savior XC90, they might actually sell fewer cars in 2016 than last year.

      PSA would be facing a long uphill battle.

  • avatar

    Well, a name change from PSA to PSA. That sounds like something upper management can spend lots and lots of ressources on.

    Also, I consider the current crop of Citroëns particularly as quite the underperformers. Take the new luxury brand DS: Use a name with the highest possible expectations. Then build a car with serious letdowns (not-so-smooth ride, dead steering, rear windows won’t go down/open) and sell it at a markup. Well….no.

  • avatar

    I suspect PSA are hoping the EU and US make progress on agreeing common rules and regs. If they do that selling cars in the US will be a much smaller gamble for them.

    Personally I think any non US car maker should think carefully about the US market because of VWs diesel gate experience. Had GM done something similar my gut feeling is they would be getting off lighter than the German VW brand. US car brands have after all actually made cars with faults that courts have said kill people directly. Whilst VW acted in an uncompetitive manner and should be punished I think the scale of the fines has a whiff of protectionism about it….

    Maybe I’m wrong but it doesn’t feel right. It’s a shame because if you stifle competition you actually weaken destructive brands…

    • 0 avatar
      George B

      Tslag, Volkswagen violated a specific “Don’t do this” EPA regulation and then lied about fixing the problem with an ineffective software update. Blatant fraud like the Worldcom accounting scandal. In contrast, a GM employee worked with Delphi to make a change in an ignition switch and didn’t assign a new part number to the part. The improper documentation made it harder to identify the root cause of cases where air bags failed to deploy in a crash. However, the employees involved most likely didn’t see a connection between the ignition switch that turns too easily and an failure of air bags to deploy in some crashes.

    • 0 avatar

      It looks like the European market, their mainstay is rebounding again. I do not see the US market as being vital to the future growth of PSA. They are finding other Global markets

  • avatar

    I love Citroens to death but I think the fact that they have intentionally pulled themselves away from hydropneumatic suspension, hatchback sedans, other quirky Citroen characteristics, have basically neutered themselves. Without those distinct features, I don’t see how they can differentiate themselves from other “high-end” companies already in the US and their cars don’t have the reliability and feature-laden-value of the Korean and Japanese companies, i.e. they’re in no man’s land. As much as I like the Citroen brand, I think PSA should focus on Asian and European market and build up their financial standing there.

  • avatar

    A Peugeot 308 with a long roof would be compelling. It would be a viable alternative to Golf. Not being interested in another VW anymore, what else is around?

    We had a 301 rental on a job in Morocco and it was a spunky little thing. Driving was an exciting proposition given the combination of the car and the locals. The car was obviously built to cost bearable in Africa, but it was much better than any Dacia. VW is leaving a vacuum behind. Peugeot should fill it.

  • avatar

    I have always thought Peugeot Citroen would be the perfect partner for FCA, despite SM’s recent negative declaration. So going alphabetically, once the merger DOES occur. What will this automotive behemoth be be called? CFPSA Groupe? CCDSPSA Groupe? ACCDDSJMPRSA Groupe? Did I miss a brand?

  • avatar

    If they want to get into the US market, the way to do it is with some slickly styled CUVs- a full line of them too. Large, Medium, Small and Compact. I personally think French styling is cool- it would certainly get people in the showrooms. However, they’re gonna NEED a V6 at least in the top-dog. Smart thing to do might be to just buy Ecoboosts from Ford or another maker.

    Puny sedans with puny interior space aren’t going to to cut it. Even the larger ones will get their faces shoved in by the German big 3.

  • avatar

    PSA returning to the US.??? First the VW article on the diesel engine reflash and now this. April Fool’s Day Week!!
    (Of the two articles, this one is the less likely.)

  • avatar

    The only real reason the Fiat brands started returning is because they bought Chrysler. Groupie PSA or Groupon PSA or whatever they are have no such easy way in. If they MUST try though, at least bring the lion badge, if might create some awesomeness.

  • avatar

    a new car badge as a rebuttal to the Lexus, Honda NSX, that should be called “F-_k you loser” specifically targeted for the american market, in wide circuation.

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