PSA looks to break its dependence on Europe by expanding into emerging markets

The company hopes to improve earnings by cutting costs and by selling more high-end models

2013/07/08

Summary

Global Sales of PSA Under severe sales environment in Europe and substantial decrease in export of CKD kits to Iran due to economic sanctions against Iran, PSA's revenue in 2012 fell 7.5% y/y to EUR 55.46 billion, registering an operating loss of EUR 576 million and a net loss of EUR 5.01 billion.

 To improve its operating performance,, PSA will close its plant in France, slash workers, develop product and procure parts/components jointly with GM, and reduce development cost/capital expenditure.

 Aiming to increase the sales ratio outside Europe to 50% or over by 2015, PSA will invest in production and establishment of sales network in China, Russia, and Latin America to revamp the earning structure. Also, it will redefine Peugeot and Citroen brand images and market them to different customer bases. Also, PSA will market models of the Peugeot 301 and Citroen C4-L for emerging countries, the Peugeot 2008 for global markets, and higher-grade models including the Citroen DS5.

 LMC Automotive forecasts the  global sales of PSA group to decrease by 5.4%, to 2.78 million units in 2013. LMC Automotive indicates: "the immediate problem for PSA is its dependence on the depressed European market. France, Italy and Spain account for over half of European sales. With little in the way of exports to boost sales, the immediate outlook remains bleak." In LMC Automotive's view, beyond this year, PSA group's global sales rise to 2.93 million units in 2014, a 5.3% increase compared with 2013. The growth continues to 3.16 million units by 2016, which is a 13.6% boost in comparison with the group's unit sales in 2012.

Related Report: Shanghai Motor Show 2013 (3): Seven major US and European OEMs



PSA strategy: Improvement in earnings structure and cost reduction

 PSA targets to halve the loss of the operating cash flow in 2013 from EUR 3 billion in 2012. PSA will unveil new models of Peugeot, Citroen, and a higher-grade brand, DS Line to improve profitability of each brand. While PSA reduces costs through cooperation with GM and personnel cutbacks, it will start to invest in local production bases and will boost the sales ratio outside Europe in order to improve its earning structure that heavily depends on South Europe.

2013 Target

2013 target * To introduce a total of 17 new models - 9 models in Europe and 8 models outside Europe - under each of Peugeot, Citroen, and DS Line in 2013.
* To halve the loss of operating cash flow from EUR 3 billion in 2012 (To target to achieve breakeven in operating cash flow in 2015.)

 

Highlights in Europe and outside Europe

Countermeasures in slumping European market Introduction of a new modular platform  PSA will introduce the Efficient Modular Platform 2 (EMP2), aiming to reduce costs by sharing components. The EMP2 platform will replace PF2, which is used in C segment sedans and D segment models, and PF3, which is used in D and E segment models. PSA will start introducing models that use the EMP2 platform in Europe in 2013 and in China in 2014. The EMP2 will be used in 50% of C and D segment models in the PSA Group in the long run. In addition, by sharing the EMP2 platform with MPVs of Opel, the GM subsidiary, PSA will further cut costs.
Refocusing Brands  PSA will improve an earnings structure by shifting core models in the lineup of Peugeot, Citroen, and DS Line to higher-segments and by clarifying and differentiating the brand identity.
Sales ratio outside Europe * PSA aims to increase sales and production capacity in emerging countries, saying that it will boost the sales ratio outside Europe to 50% by 2015 and to two-thirds of total sales by 2020. (the sales ratio outside Europe was 33% in 2011 and 38% in 2012)
Highlights in other markets China * PSA targets to sell 50,000 vehicles in 2013. (440,000 units in 2012)
* The Wuhan third plant of Dongfeng Peugeot-Citroen Automobile (a joint venture company between PSA and Dongfeng Motor) will start operations in the second half of 2013.
* Changan PSA (a joint venture company between PSA and Changan Automobile) will begin local production of the DS5 in the second half of 2013.
* PSA will achieve production capacity of about 1 million units in China in 2015.
* PSA aims to achieve a marketshare of 5% in China in 2015.
Latin America * PSA will invest EUR 240 million a year in Brazil during 2012-2015. It aims to achieve production capacity of 300,000 vehicles in 2015.
* To market models such as the Peugeot 208, 308, C3, and Citroen C4-L.
* To introduce eight locally-made models by 2015.
Russia/Other markets * To start production of the Citroen C4-L in a local plant in Russia.
* To begin assembly of LCVs in Kazakhstan.
* To start cooperation with a local manufacturer in Vietnam and local production of the Peugeot 408 and to start sales of imported models.

 

PSA alliance strategy

Business alliance with GM

Logistics * PSA's affiliated company, Gefco, and GM will jointly take charge of logistics in Europe.
Organization for joint procurement * PSA and GM will jointly purchase parts/components and raw materials worth USD125 billion (about EUR 100 billion) per year to cut costs.
Joint development of platforms and models * C-MPV for Opel/Vauxhall, C-SUV for Peugeot, and B-MPV for the two OEMs will be developed by using PSA platform.
* GM will take the initiative of the development of B-MPV for the two Groups.
* The two OEMs will also jointly develop a new platform for B segment vehicles (also usable for green vehicles).
Development of engine * To develop a new 3-cylinder gasoline engine based on PSA compact eco-friendly engine.
Development of new models and technologies * To research and develop new models and technologies for emerging countries such as Latin America and Russia.

 

Cooperation concerning light commercial vehicles

Agreement between PSA and Toyota on OEM supply of LCVs  In July 2012, PSA was reported to have reached an agreement with Toyota that it would supply LCVs based on PSA model on an OEM basis. PSA will supply Toyota Pro Ace, an LCV that is based on the Peugeot Expert and the Citroen Jumpy to Toyota starting in the second quarter of 2013. Three engines are available - a 1.6-liter 4-cylinder turbo diesel engine with a maximum output of 89hp, and a 2.0-liter 4-cylinder turbo diesel engine with maximum output of 126hp or 161hp. Toyota will provide some of development costs and capital investment. PSA produces the model at its Sevel Nord plant, but will not form a capital alliance. The two OEMs also reached an agreement on the supply of a new model. PSA expects that this cooperation will continue until 2020 or later.
PSA and FIAT dissolve their joint production of LCVs in France in 2017  In July 2012, PSA and FIAT announced the joint venture LCV business at the Sevel Nord plant in North France would be continued. The LCVs of the two Groups will be produced until the end of 2016, but the contract would be terminated in 2017.
PSA fulfilled the three requirements - 1. withdrawal from a joint venture business with FIAT, 2. a business partnership on the production of LCVs with a new partner (Toyota), and 3. improvement of competitiveness of production facilities and guarantee of LCV production - and reached an agreement with labor unions such as CFE-CGC, FO and SPI-GSEA.

 

Dissolution of a business alliance with BMW

PSA dissolves a HV technical alliance with BMW  In September 2012, PSA was reported to terminate joint development of HV technology with BMW. PSA and BMW established an equally-owned joint venture company in October 2011 to develop, procure, and produce electric powertrain and its components. In July 2012, BMW said that it would continue development independently after it terminated the joint venture with PSA. BMW plans to continue joint development of engines with PSA until 2016, the end of the contract. BMW suggests that it may terminate the alliance for the development of engines after 2016.

Note: In March 2013, BMW was reported to consolidate its alliances related to eco technologies into its alliance with Toyota.

 

 



Europe: Restructuring and reduction versus investment for new model production

 Due to slumping business, in July 2012, PSA announced a restructuring plan in which it would cut about 8,000 workers in France. PSA plans to shut down the Aulnay plant with about 3,000 workers in 2014, to reduce the number of workers at the Rennes plant by 1,400 from 5,600, and also to slash personnel by 3,600 in the non-manufacturing divisions across the company. In December 2012, PSA also announced a plan to further cut personnel by 1,500. Eventually, PSA reached an agreement with labor unions on the personnel cutbacks of 11,200 in May 2013. PSA also reduced production at its plant in Slovakia due to slumping demand.

 In the meantime, due to the popularity of Peugeot 2008, PSA will boost capital investment and production at its Mulhouse plant in France and also in Sevel Nord plant to supply LCVs to Toyota.


 The factory utilization rate in Europe was 87% for A and B segment vehicles in 2009, which declined to 72% in 2012 and further to 59% in the first quarter of 2013.

Transition of the facility utilization rate in Europe:

2009 2011 2012 Q1 2013
Utilization rate 80% 86% 75% 67%
Of which A/B segment vehicles 87% 76% 72% 59%

Note: 100% Utilization: 2 shifts working 8 hours/day, 235 days/year
Source:First-quarter revenues 2013

 

France: Enhancement of production and cost reduction through personnel cutbacks

Investment in plants in France

Enhancement of production at Mulhouse plant  At the end of June 2013, PSA announced to boost production capacity from 310 units/day to 615 units/day due to the successful sales of Peugeot 2008. In January 2013, PSA invested EUR 150 million in its Mulhouse plant in France to produce the Peugeot 2008.
Investment in production of LCVs  At the end of August 2012, PSA announced that it would invest 750 million euros in the production of the Pro Ace LCV at its Sevel Nord plant, which it supplies to Toyota on an OEM basis. PSA says that it plans to produce LCVs for Europe and to allocate more than EUR 400 million from the total investment to the development cost. Toyota will provide some of the development cost and capital investment.

Shutdown of plants in France and cost reduction through personnel cutbacks

Shutdown of the Meudon-la-Foret R&D center  In May 2013, as part of cost reduction measures, PSA announced that it would shut down the R&D center in Meudon-la-Foret, near Paris. PSA plans to sell the center. PSA plans to transfer the research and administrative work to the R&D center in Velizy by the end of 2014 and some of the work to the Poissy plant and the Vesoul distribution center.
PSA agrees to CGT, the large labor union  In May 2013, PSA announced that it had reached an agreement with CGT, the largest labor union, on the termination of a strike at the Aulnay plant, which had continued since January 16, 2013. Agreement reached is as follows:
1. All the workers return to work.
2. To drop an objection to PSA's restructuring plan.
3. To provide job-placement assistance to about 130 workers who participated in the strike among the 2,000 workers by the end of May.
4. Not to compensate for workers during the period of the strike.
Personnel cutbacks of 11,200  At the end of April 2013, PSA reached an agreement with CGT, the largest labor union, on the cutbacks of 11,200 workers. In July 2012, PSA announced a restructuring plan in which it would slash about 8,000 workers due to financial difficulties. PSA planed to terminate production at its Aulnay plant in 2014, which employs about 3,000 workers and to slash 1,400 workers at its Rennes plant, with a plan to cut 3,600 workers across the company. In December 2012, PSA also announced that it would further cut 1,500 workers.

 

Slovakia: Cutback of production at the Trnava plant

Suspension of production at Trnava plant  Because of slumping demand, PSA suspended production at its Trnava plant for 21 days in the fourth quarter of 2012 and four days in February 2013. The Trnava plant produces the Peugeot 207 and 208, and the Citroen C3 Picasso. PSA says that the 2013 production volume will exceed 215,300 units in 2012. (250,000 units in 2013 according to LMCA forecast shown later)

 

 



Highlights outside Europe: PSA look to break its dependence on Europe

 In China, PSA will prepare local production with local manufacturers and establish sales network. PSA will start the construction of an R&D center and a local plant, and will also expand and integrate a dealer network. In Brazil, PSA will begin production of a model that is tailored to suit local specifications. In Vietnam and Kazakhstan, PSA forms an alliance with local manufacturers to import/sell, and locally assemble vehicles.

China: Preparation of joint/sales network with local manufacturers

Dongfeng- Peugeot-Citroen Automobile Preparation of local sales network  PSA is currently pressing ahead with the integration of a sales network of vehicles made locally and import cars with Dongfeng-Peugeot-Citroen Automobile (a joint venture company between PSA and Dongfeng Motor). The number of dealers of locally-made models is 16, which is expected to increase around 30 to 50 dealers by the end of 2013.
Launch of the Peugeot 3008  In January 2013, Dongfeng-Peugeot-Citroen Automobile launched a locally-made SUV, the Peugeot 3008. In its medium-term development plan, Dongfeng-Peugeot-Citroen Automobile announced that it would introduce six new models by 2015.
Changan Automobile Changan PSA starts construction of an R&D center  In December 2012, PSA and Changan PSA Automobile Co., Ltd. (hereinafter referred to as Changan PSA), which is a joint venture company between PSA and Changan Automobile, held a groundbreaking ceremony of an R&D center in LongHua New District, Shenzhen. PSA built facilities including an R&D center, a test center, and a test course. These facilities in which PSA invest RMB 500 million are scheduled to start operations in 2014. Research for Citroen DS Line products and  engines are expected to take place. They plan to share technologies and resources with R&D centers of Changan Automobile and PSA in the future.
Changan PSA prepares local production/sales network for DS Line  Changan PSA plans to launch the DS5 in the second half of 2013 as its first locally-made model. In 2014, it will also introduce two new models. 13 DS Stores, which are exclusive dealers for DS Line, opened at the end of November 2012.
 In August 2012, Changan PSA unveiled the DS3 at the Chengdu Motor Show and started import/sales of the model. Since the DS3 was introduced into the market in March 2010, 180,000 units have already been sold globally. In China, import and sales of the DS5 and the DS4 began in June 2012.

 

Brazil: expansion of a local plant and start of local production

Peugeot launches locally-made the Peugeot 208  In April 2013, PSA started selling the Peugeot 208 in Brazil. Local production of the model started in January 2013. PSA invested more than EUR 350 million in the development of the Peugeot 208 and the preparation of production and the expansion of facilities at the Porto Real plant. The production capacity of the plant was increased from 150,000 units a year to 200,000 units. The Brazilian 208 comes with a flex-fuel engine made in Brazil: it was developed to meet the driving conditions in Brazil and the local needs.
 In 2012, production of the Peugeot 208 began at the Poissy and Mulhouse plants in France and the Trnava plant in Slovakia. More than 220,000 units were sold in cumulative sales.

 

Russia: Local production to start at the Kaluga plant

Commercial production of the CitroenC4 L in Russia  In April 2013, PSA started production of the Citroen C4 L at its Kaluga plant. It began selling the model at 62 dealers in Russia in June.
 PSA targets to sell 13,000 units in Russia in 2013 with a plan to produce 2,000-2,500 Citroen models per month.

 

Vietnam: Import and sales, and local assembly

Peugeot forms an alliance with Vietnam-based THACO  In April 2013, Peugeot concluded a contract with a local manufacturer in Vietnam, THACO (Thruong Hai Auto Corporation Group), on the import and sales, and local assembly of Peugeot models in Vietnam.
 Peugeot will open three dealers around Hanoi City and three in Ho Chi Minh City to enter the high-end passenger car market by the end of 2013, and will increase the number to 15 in the future.
 Peugeot mainly sell Peugeot models that it imports, while it plans to assemble the Peugeot 408 locally.
 In addition, in order to be exempted from tariffs on import cars, Peugeot estimates that 80% of the vehicles that it will market in Vietnam to be locally produced vehicles in the future.
 Also, Peugeot forecasts that the sales volume in the automobile market in Vietnam will grow to 300,000 units per year by 2020, aiming to gain about 5% share of the market.

 

Kazakhstan: to start cooperation and production/sales with Agromas Holding

Start of assembly in Kazakhstan  In March 2013, PSA announced that it would start assembly of passenger cars and LCVs in June of the same year in Kazakhstan. With this move, PSA will employ 150 workers in Kazakhstan and expects to hire 300 workers or more in France for knockdown kit production.
 In March 2013, PSA concluded a contract on the production and sales with Agromas Holding, which produces agricultural vehicles and automobiles. The initial production capacity is 4,000 units a year and the Peugeot 301, 508, 3008, and the Partner are produced. PSA plans to sell more than 10,000 units a year in the future.

 

India: Postponement of construction plan of a new plant

Termination of re-entry into the market in India  In January 2012, PSA announced that it would postpone the construction plan of a new plant in India. In February 2011, PSA announced that it would re-enter the market in India, but due to worsening financial conditions caused by slumping sales in Europe, PSA says that it is currently re-examining the priority of investment.

 

 



PSA Model plan: Higher earnings from each brand

 PSA will increase the sales ratio of higher segment models. The model lineup of PSA has mainly been composed of A/B segment models. However, it will increase the sales ratio of C/D segment models and SUVs/MPVs in its model lineup, thus increasing the sales ratio of models with higher margins to achieve an earnings recovery. PSA will also distinguish the brand identity for each brand to differentiate from each other. Each brand will increase sales by attracting different customer segments, thus diversifying the source of earnings. By enhancing the product appeal, PSA will build a structure that does not depend on marketing strategies which affect earnings including discounts.

 PSA will introduce a new modular platform, EMP2, to cut costs. It invested EUR 630 million in the development of the EMP2. The EMP2 can be a base of a variety of models including 5-door sedan, SUV, a coupe, MPV, and notchback. The EMP2 is also flexible with powertrains. It can be equipped with a 4-cylinder engine, HV, and powertrain for 4WD. Thus the model using EMP2 can respond to various demands in the global market. PSA will gradually replace the PF2 and the PF3 platforms that are used in existing C and D segment models, with a plan to use the EMP2 in 50% of its production volume in the entire Group.


 In PSA's sales ratio by segment, the sales ratio of C and D segments exceeded that of A and B segments in 2011. Also in 2011, the sales ratio of premium models amounted to 18%. In 2012, the ratio of C and D segments increased to 45%, while the ratio of A and B segments and the premium segment remained the same as the previous year.

PSA: Sales rate by segments

2009 2010 2011 2012 Q1 2013
C and D Segments 38% 40% 43% 45% 48%
A and B Segments 46% 43% 38% 38% 35%
Premium(*) 9% 13% 18% 18% 18%
Source:First-quarter revenues 2013
Note(*)  Models which PSA distinguishes as "premium vehicles": A, B, and C segments:(the Peugeot 207CC, 2008, 308CC, RCZ, 3008, 4008, the Citroen DS3, DS4, C4Air-Cross): D and E segments:(the Peugeot 508,407,607,4007, the Citroen C5, C6, DS5, C-Crosser)

 

Wild Rubis New Peugeot 301
Wild Rubis: DS Line SUV concept model New Peugeot 301: A compact 4-door sedan
for emerging markets

 

Peugeot Brand

Model Launch Description
208 March 2012  The 208 is a successor of the Peugeot 207, which is the best seller among Peugeot models. It is a 3-door/5-door hatchback - a core model in the B segment. Production began at the Poissy plant in France in January 2012. Peugeot plans to sell 550,000 units worldwide in 2013. The model shares the new PF1 platform with the New Citroen Elysee.
301 November 2012  The 301 is a compact 4-door sedan for emerging countries. It is produced at the Vigo plant in Spain and will be introduced in Turkey, Central and East Europe, Russia, Ukraine, Greece, Maghreb, Middle East, Africa, and Latin America.
3008 January 2013  The 3008 is Peugeot's first crossover model, production of which began in 2009 and which underwent a facelift in January 2013. The model is a first SUV that is locally made by Dongfeng Peugeot-Citroen Automobile, which is a joint venture company between PSA and Dongfeng Motor. The locally-made 3008 was unveiled at the Guangzhou Motor Show held in November 2012. The model comes with a 1.6-liter THP engine that is jointly developed by PSA and BMW or a 2.0-liter all-aluminum engine with CVVT.
2008 Summer of 2013  The 2008 is a compact crossover that made a debut at the Geneva Motor Show held in March 2013. The 2008 is Peugeot's first model for the global market. It is produced at the Mulhouse plant in France. Outside Europe, it will also be exported to Turkey, Australia, South Africa, Japan, and Russia. The Chinese model will be produced at the Wuhan plant while the Brazilian model will be produced at the Porto Real plant in Brazil.
2008 Hybrid Air Unveiled in March 2013  The 2008 Hybrid Air is a concept model based on the Peugeot 2008 (unveiled at the Geneva Motor Show) equipped with Hybrid Air - a hybrid system that combines a gasoline engine with compressed air. Hybrid Air is a powertrain system made of a hydraulic motor utilizing the energy of compressed air and a gasoline engine. Air from the compressed air tank drives the hydraulic motor. Three modes are available - engine and hydraulic motor combined mode, engine mode, and hydraulic motor mode.
308 Autumn of 2013  The new 308, a successor of the second generation 308 which made a debut in 2007, uses a newly-developed EMP2 platform. A full LED headlamp is used in the higher-grade model for the first time in this class. The model features an in-vehicle Infortainment systems named i-cockpit. The New 308 is produced at the Sochaux plant in France and the powertrain is supplied from the Tremery plant and the Douvrin plant.

 

Citroen Brand

Model Launch Description
Elysee September 2012  The Elysee is a model for emerging countries, which was unveiled at the Paris Motor Show held in September 2012. The model shares the PSA New PF1 platform with the New Peugeot 301.
C4L December 2012  The C4L is a sedan model of the C4. It is designed for emerging counties including China and Russia. The main market of the C4L is China and Russia. Production began in China in December 2012 and in Russia in April 2013.
C4 Picasso June 2013  The C4 Picasso is the first Citroen model that uses the new EMP2 platform. It is the first model that uses the BlueHDi diesel engine that meets Euro 6 emission standard. The C4 Picasso was exhibited at the Geneva Motor Show held in March 2013 as a concept car named the Technospace.
Grand C4 Picasso Unveiled in June 2013  The Grand C4 Picasso is a long-wheel model of the C4 Picasso (Length: 4,590mm with a wheelbase of 2,840mm), which enables a 3-row seat. The Grand C4 Picasso uses the new EMP2 platform.

 

Citroen DS Line

Model Launch Description
Citroen DS5 January 2012  The Citroen DS5 is a midsize crossover. The model is Citroen's higher-grade model and a third model in the DS series. The model used the C4's platform with an extended wheelbase. It comes with a 1.6-liter gasoline engine or a 1.6/2.0-liter diesel engine. A diesel hybrid, "the Hybrid4," is also available. In China, the model is scheduled to be launched in the second half of 2013 as a locally-made model.
Wild Rubis April 2013  The Wild Rubis is a DS Line SUV concept car. It was unveiled at the 2013 Shanghai Motor Show. Length: 4,700mm, width: 1,950mm, height: 1,590mm with a wheelbase of 2,900mm.

 

 



PSA Group's sales

PSA's global sales in each region

 PSA's 2012 global sales (including export of CKD kits) fell by 16.5% y/y to 2.965 million units. In China, sales increased by 9.4% y/y to 442,000 units while in other markets including Algeria sales grew by 15.6% to 259,000 units. In the meantime, in Europe (the sales ratio of Europe is high at 62.3%), hard hit by slumping sales, sales fell by 14.8% y/y to 1.758 million units, while Latin America declined by 13.2% to 283,000 units. Due to the suspension of export of CKD kits to Iran amid economic sanctions, exports of CKD kits also fell substantially by 68.3% from the previous year to 145,000 units.


 By model, sales of the new Peugeot 208 have been successful at 221,000 units but was not enough to make up for the declined sales volume, due to the suspension of export of CKD kits to Iran in February 2012. Sales of the Peugeot 405 fell substantially by 59.1% y/y and those of the Peugeot 206 and 207 declined by 55.1% and 50.1% y/y, respectively.


 In January-March 2013, global sales fell by 14.6% y/y to 675,000 units, while in China, due to the start of sales of the Peugeot 3008 and the Citroen-C4L, sales grew by 31.2% y/y to 143,000 units. In Europe, sales in France, Spain, and Italy declined by 16.8% to 382,000 units. Export of CKD kits fell substantially to 400 units due to suspension of export.

 

PSA's global unit sales
(1,000 units)
2008 2009 2010 2011 2012 Changes
in
2011-2012
Q1 2012 Q1 2013 Changes
in
Q1 2012-
Q1 2013
Europe 2,231 2,159 2,195 2,063 1,758 (14.8%) 459 382 (16.8%)
Russia 59 41 56 75 78 4.0% 19 14 (26.3%)
Latin America 263 232 294 326 283 (13.2%) 52 65 25.0%
China 179 272 376 404 442 9.4% 109 143 31.2%
Others 219 142 204 224 259 15.6% 52 71 36.5%
Total Cars 2,952 2,845 3,125 3,092 2,820 (8.8%) 692 674 (2.6%)
Total CKD 309 342 477 458 145 (68.3%) 99 *0 (99.6%)
Global Sales 3,260 3,188 3,602 3,549 2,965 (16.5%) 790 675 (14.6%)
Source: PSA Full Year Results 2012
(Note) 1. PSA suspended its CKD shipments to Iran from February 2012.(*Delivered 400 units in Q1 2013)
2. Numbers in brackets "(   )" represent negative value.

 

PSA Worldwide Unit Sales by models (including CKD)

Peugeot
(units)
Model 2011 2012 Changes
in
2011-2012
Q1 2012 Q1 2013 Changes
in
2012 Q1-
2013 Q1
107 92,093 76,354 (17.1%) 22,340 15,780 (29.4%)
206 445,038 199,933 (55.1%) 71,030 27,610 (61.1%)
207 296,665 147,936 (50.1%) 64,690 19,920 (69.2%)
208 631 220,774 349 times 11,180 77,720 7 times
2008 - - - 0 330 -
3008 134,951 108,263 (19.8%) 29,720 34,480 16.0%
301 0 4,813 - 40 16,930 -
307 71,499 102,965 44.0% 10,760 5,400 (49.8%)
308 203,998 184,283 (9.7%) 65,200 51,170 (21.5%)
4007 7,387 2,707 (63.4%) 980 430 (56.1%)
4008 - 9,287 - 590 2,470 318.6%
405 270,551 110,569 (59.1%) 67,040 0 (100.0%)
407 2,605 129 (95.0%) 60 0 (100.0%)
408 74,603 79,954 7.2% 16,640 23,120 38.9%
5008 72,314 52,474 (27.4%) 14,750 10,700 (27.5%)
508 124,150 121,662 (2.0%) 30,900 24,760 (19.9%)
807 6,345 4,489 (29.3%) 1,180 650 (44.9%)
BIPPER 34,354 26,026 (24.2%) 6,340 5,820 (8.2%)
BOXER 57,662 53,870 (6.6%) 12,050 13,810 14.6%
EXPERT 32,337 29,451 (8.9%) 6,690 6,100 (8.8%)
ION 2,392 2,905 21.4% 290 100 (65.5%)
PARTNER 165,240 149,804 (9.3%) 36,830 32,610 (11.5%)
RCZ 18,828 11,118 (40.9%) 3,670 2,640 (28.1%)
Other 85 249 192.9% 0 80 -
Total 2,113,728 1,700,015 (19.6%) 472,970 372,630 (21.2%)

 

Citroen
(units)
Model 2011 2012 Changes
in
2011-2012
Q1 2012 Q1 2013 Changes
in
2012 Q1-
2013 Q1
BERLINGO 165,807 139,769 (15.7%) 36,500 34,870 (4.5%)
C-CROSSER 7,460 3,339 (55.2%) 1,060 110 (89.6%)
C-ZERO 2,074 3,348 61.4% 330 60 (81.8%)
C1 87,673 66,706 (23.9%) 18,270 17,090 (6.5%)
C2 10,468 14,645 39.9% 3,840 3,690 (3.9%)
C3 255,312 215,751 (15.5%) 73,560 55,820 (24.1%)
C3 Picasso 101,612 84,740 (16.6%) - - -
C4 286,171 263,831 (7.8%) 90,940 89,890 (1.2%)
C4 Picasso 116,927 82,917 (29.1%) - - -
C-ELYSEE - 5,628 - 40 9,760 -
C4AIRCROSS - 16,986 - 1,410 3,820 170.9%
C5 101,213 76,345 (24.6%) 19,290 16,530 (14.3%)
C6 922 1,572 70.5% 230 30 (87.0%)
C8 5,540 4,083 (26.3%) 920 690 (25.0%)
DS3 78,375 68,248 (12.9%) 17,220 18,400 6.9%
DS4 29,477 33,157 12.5% 8,100 8,170 0.9%
DS5 3,255 27,807 754.3% 6,470 5,430 (16.1%)
JUMPER 46,094 43,069 (6.6%) 10,070 10,620 5.5%
JUMPY 29,015 24,913 (14.1%) 5,800 6,030 4.0%
NEMO 34,304 28,521 (16.9%) 6,160 4,710 (23.5%)
XSARA - - - 1,510 40 (97.4%)
XSARA Picasso 8,444 3,951 (53.2%) - - -
ZX 65,545 55,569 (15.2%) 15,490 16,200 4.6%
Total 1,435,688 1,264,895 (11.9%) 317,210 301,960 (4.8%)

 

2011 2012 Changes
in
2011-2012
Q1 2012 Q1 2013 Changes
in
2012 Q1-
2013 Q1
Grand Total 3,549,416 2,964,910 (16.5%) 790,180 674,590 (14.6%)

Source:PSA Peugeot Citroen Ventes Mondiales Consolidees(VP+VU+ED)/Worldwide Unit Sales(PC+LCV+CKD) 2012 & 2013 Q1
Note:Numbers in brackets "(  )" represent negative value.

 

PSA's results

 In 2012, the Group revenue fell by 7.5% y/y to EUR 55.46 billion. It registered an operating loss of EUR 576 million and a huge net loss of EUR 5.01 billion. In the Group revenue, automotive division revenue declined substantially by 10.3% to EUR 38.299 billion. Operating loss increased by more than 16 times from the previous year to EUR1.564 billion. PSA says that the slumping sales in Europe caused the substantial profit decline because the sales ratio in South Europe was high and had a huge impact. Also in Latin America, the establishment of a production structure adversely influenced sales volume including the delay in the resumption of the operations of the Porto Real plant, which was halted to boost production capacity.


 In January-March 2013, the Group revenue fell by 6.5% y/y to EUR 1.325 billion, of which automotive division revenue declined by 10.3% to EUR 872.2 million. PSA says that profit decline was caused by decreased sales volume in Europe and Russia.

PSA's consolidated business results
(Euros in millions)
2008 2009 2010 2011 2012 Changes
in
2011-2012
2012 Q1 2013 Q1 Changes in
2012 Q1-
2013 Q1
Sales 54,356 48,417 56,061 59,912 55,446 (7.5%) 13,930 13,025 (6.5%)
(of which automotive division) 41,643 38,265 41,405 42,710 38,299 (10.3%) 9,719 8,722 (10.3%)
Recurring
operating income
550 (689) 1,796 1,315 (576) - - - -
(of which automotive division) (225) (1,257) 621 (92) (1,504) 1534.8% - - -
Net Profit (363) (1,161) 1,134 588 (5,010) - - - -
Source:PSA Full Year Results 2012
(Note) 1. Recurring operating income is a business index that PSA has used since 2007, equivalent to operating margin.
2. PSA has a parts supplier, Faurecia, and Financial Division other than Automotive Division.
3. PSA Peugeot Citroen disposed 75% of Gefco's stakes in Dec 2012. Values for 2012 on the above table do not include Gefco's results.
The values for 2011 excluding Gefco's are as follows: Sales: 58,590 million Euros; Recurring operating income: 1,093 million Euros; Net Profit: 588 million Euros.
4. Numbers in brackets "(  )" represent negative value.

 

 



Production Forecast by LMC Automotive: PSA Group production forecast by country and by make

(LMC Automotive、May 2013)

 LMC Automotive expects a 4.2% drop to 2.91 million units for PSA's global light vehicle production for 2013. A significant drop of 21.5% is observed in France, where "Capacity utilization…is currently running at circa 60%, a figure forecast to show no improvement over the next few years."

 Another country which experienced a significant drop is Iran. Its production volumes in 2013 fell by a massive [41.4% from] the 2012 calendar year. This is due to sanctions and the decrease will continue over the course of 2013. LMC Automotive comments that "The difficulty is knowing how long these sanctions will be in place as the political nature of the supply interference is so uncertain. The new political leadership in Tehran may pave the way for an easing of sanctions, though this is likely to be some time away."

 Conversely, the global production volume recovers by 5.0% to 3.06 million units in 2014, slightly above the scale of 2012, and then a 10.2% increase to 3.21 million units in 2016 compared with 2013 is anticipated.

 The Significant increase of 18.4% to 525,000 units is observed during 2012 and 2013 in China. LMC automotive states that "DPCA [Dongfeng-Peugeot-Citroen], launched local production of the Peugeot 3008 at the end of 2012 and the Citroen C4L at the beginning of 2013. The Citroen C‐Elysee and the Peugeot 301 will be launched in the middle of [2013]. Meanwhile, PSA's second joint venture, CAPSA, [Changan PSA Automobiles], has decided to bring forward local production of the DS5 in the Shenzhen plant to the second half of 2013." While PSA may have come late to the expansion in China, the positive contributions will be welcomed while Europe continues to be such a problem. The Introduction of locally produced models contributes to the increase of the global production."

 

PSA Group production forecast by country and by make (LMC Automotive)

(Units)
COUNTRY GLOBAL MAKE 2010 2011 2012 2013 2014 2015 2016
Total 3,684,245 3,657,796 3,042,107 2,913,437 3,059,676 3,104,858 3,209,246
Argentina Citroen 42,629 36,299 26,692 34,052 39,310 41,661 48,445
Peugeot 84,471 107,599 106,842 96,219 100,051 100,312 92,697
Argentina Sub-total 127,100 143,898 133,534 130,271 139,361 141,973 141,142
Austria Peugeot 19,065 19,725 9,840 8,430 7,096 6,007 12,009
Brazil Citroen 67,492 88,022 70,893 63,680 70,994 77,969 82,693
Peugeot 80,608 57,421 33,297 70,134 112,157 120,444 104,353
Brazil Sub-total 148,100 145,443 104,190 133,814 183,151 198,413 187,046
China Citroen 223,116 231,833 226,109 257,743 256,066 288,618 313,709
Peugeot 153,215 174,102 217,354 267,192 330,327 363,341 392,452
China Sub-total 376,331 405,935 443,463 524,935 586,393 651,959 706,161
Czech Republic Citroen 102,155 88,713 66,375 58,555 76,567 84,671 82,541
Peugeot 110,555 91,325 75,454 66,044 82,210 95,038 96,350
Czech Republic Sub-total 212,710 180,038 141,829 124,599 158,777 179,709 178,891
France Citroen 511,280 565,534 494,335 387,404 353,867 325,616 303,287
Peugeot 782,571 791,637 622,225 489,444 532,793 495,651 518,589
France Sub-total 1,293,851 1,357,171 1,116,560 876,848 886,660 821,267 821,876
Indonesia Peugeot - - 90 285 305 297 304
Iran Citroen 8,918 166 - - - - 12,813
Peugeot 508,808 480,011 269,047 157,692 122,222 131,574 182,232
Iran Sub-total 517,726 480,177 269,047 157,692 122,222 131,574 195,045
Italy Citroen 38,611 47,238 39,981 37,106 37,119 29,399 25,688
Peugeot 48,969 58,601 50,822 46,908 46,986 46,536 47,337
Italy Sub-total 87,580 105,839 90,803 84,014 84,105 75,935 73,025
Japan Citroen 230 3,388 1,373 - - - -
Peugeot 230 3,390 1,885 - - - -
Japan Sub-total 460 6,778 3,258 - - - -
Kazakhstan Peugeot - - - 944 2,406 3,733 4,073
Malaysia Peugeot 3,125 3,553 5,872 7,705 7,821 8,417 7,864
Portugal Citroen 24,214 25,907 21,144 25,877 26,643 22,674 12,343
Peugeot 23,183 24,083 19,471 25,354 28,347 17,560 11,496
Portugal Sub-total 47,397 49,990 40,615 51,231 54,990 40,234 23,839
Russia Citroen 6,172 13,203 13,106 15,228 28,330 31,363 29,588
Peugeot 17,402 21,421 20,187 23,180 52,287 60,514 57,057
Russia Sub-total 23,574 34,624 33,293 38,408 80,617 91,877 86,645
Slovakia Citroen 77,090 68,337 56,552 53,975 41,555 37,740 40,272
Peugeot 109,047 109,220 158,214 199,396 236,586 240,577 235,818
Slovakia Sub-total 186,137 177,557 214,766 253,371 278,141 278,317 276,090
Spain Citroen 314,747 247,972 188,798 252,689 272,839 261,318 274,457
Peugeot 224,374 217,867 184,787 208,426 131,991 146,894 152,882
Spain Sub-total 539,121 465,839 373,585 461,115 404,830 408,212 427,339
Turkey Citroen 48,333 37,255 30,564 24,999 27,723 30,556 28,898
Peugeot 53,635 43,974 30,798 34,776 35,078 36,378 38,999
Turkey Sub-total 101,968 81,229 61,362 59,775 62,801 66,934 67,897
Source:LMC Automotive "Global Automotive Production Forecast (May, 2013)"
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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