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PSA Group will rely on new energy efficiency and improve performance in China

[Che Xunwang report] 17th Guangzhou International Automobile Exhibition, on November 22, 2019 –12 1st, held in China Import and Export Fair Pazhou Complex. Exhibition, PSA Peugeot Citroen Group (hereinafter referred to as the PSA Group) executive committee, executive vice president and China and Mr. (Carlos GOMES) Southeast Asia Pacific CEO Kai Lin high, interviewed by the press. On issues of PSA Group’s Peugeot, Citroen, DS and other three major brands in China development, to answer media questions.

Mr. Gao Kai Lin focused on representation:

1, PSA Group’s new technology platform: CMP, eCMP, EMP2, were launched in China .

2, electrification PSA 2nd chance in China. The first half of next year, will launch a pure electric version of 2008, 508L plug-in hybrid version, 4008 plug-in hybrid four-wheel drive version, C5 Aircross Tianyi plug-in hybrid cars and other four-wheel-drive version, at the same time, DS brand DS 3 CROSSBACK E-TENSE this pure electric vehicles will also be imported to China next year and sales.

3, Citroen and Peugeot, each holding two brands next year will be 5 models sold in the city.

4, keeping Peugeot, Citroen brand under the premise of independence, the development of dual-brand retail outlets, and ultimately to the national percentage of 80 stores dual brand operation as the goal.

5, DS brand in China will start again in a new business strategy which may be the use of digital operation strategy.

6, search for more native talent. Improve enterprise efficiency.

In this show in, PSA Group’s new generation of Peugeot 2008 and e2008, made its world debut. This is the first time Peugeot held the world debut in China. This shows that, PSA Group attaches great importance to the Chinese market.

According to Mr. Gao Kai Lin introduced, PSA Group’s new technology platform: CMPAnd eCMP, were launched in China. The world’s first show in 2008, is based on the CMP platform, e2008 eCMP based platform. In addition to the EMP2 platform, mainly in the production of large vehicles, such as 4008,5008 Peugeot, Citroen 508L, C5 Aircross nobility, and DS7, and so on.

in terms of new models, Dongfeng Peugeot brand in the first half of 2020, the introduction of pure electric version of the e2008, 2008,508L plug-in hybrid version, 4008 plug-in hybrid four-wheel drive version. In other words, the first half of 2020, Dongfeng Peugeot only in the field of new energy, it will have 1, paragraph 2 of this article pure electric vehicles and plug-in hybrid cars on the market. As for the field of fuel vehicles, Peugeot and Citroen, will have five models sold in the city.

a series of new models on the market, indicating that a few months ago announced Dragon ldquo; yuan rdquo; revival plan, is an orderly manner.

High Kai Lin: In this plan, and there are a lot of adjustment and reform inside the Dragon for. For example, we adjust the production capacity to meet the current needs of the real sales; re-adjustment and positioning of the East and the East marked snow-branded internal architecture allow consumers to our brand new awareness. By adjusting, we hope that by 2025, annual sales return to 30-400000 units. Of course, in a sense, is not a pure sales today is the most important thing. We must first ensure that corporate profits. The above-mentioned series of changes, are designed to promote improvement in efficiency, increase efficiency and improve business conditions. One

initiatives to improve efficiency, the company adjusted its Eastern Dragon is standard and two East snow brand organization, canceled the Sino-French dual-signature system practiced before, in order to achieve high efficiency. Of course, the results will not be immediate, we will continue to strive, give us some more time, the effect will be more obvious. In addition, more to explore and develop more native talent, provide a better basis for the PSA Group’s long-term development in China, but also my workOne of the key made.

PSA Group vehicles are very popular in Europe, but in the Chinese market is not so good. It is said that one of the reasons is not really understand the needs of Chinese users?

High Kai Lin: We do still large room for improvement. The face of market competition, products, technology, cost control, distributors, sales policy, marketing strategies and other factors, must be done well, will it be possible to get good results. Now, we vigorously strengthen the new product development phase of product research, consumer preferences feedback to the design and development department. Of course, this is a long process, not overnight, but we have begun to vigorously improved.

In addition, beginning from the moment we launched the offensive electrification in China, this is a new beginning, a new journey. Because, electrification for us it is a new opportunity. We must take to seize this opportunity. e2008 pure electric version of the model selected global debut in Guangzhou, is to convey our determination to change the current brand image, brand image reverse at this stage may be more important than simply increase sales.

In fuel vehicles, specific planning what?

High Kai Lin: old, Citroen and Peugeot brands in China, there are 16 products, there are eight Citroen, Peugeot has eight. In this regard, we will be optimized, leaving only in terms of design, technology and equipment, etc. are advanced models. By 2020, two brands will remain 10 products, namely Citroen and Peugeot 5 models each.

Second, in power, our star products are two mdash; mdash; 1.2T and 1.6T. The former has won four consecutive years in Europe ldquo; International Engine of the Year rdquo; awards in all aspects of acceleration, fuel consumption, vibration, ride comfort, noise, etc., have excellent performance; the latter is to develop our cooperation with BMW engines , but also a very good product. These two models have been used in China at present power models, we will continue to use the next few years. In addition, we will launch a pure electric and plug-in hybrid powertrain.

Third, in terms of interconnection vehicle, we signed a global strategic partnership agreement with Huawei. Listed last year DS7, is the result of cooperation with Huawei.

in the marketing, service, what specific arrangements?

High Kai Lin: Dongfeng Peugeot and Dongfeng Citroen new ldquo; blue care 2.0rdquo; and ldquo; as home care rdquo; service commitment, we will continue to implement the customer care service system and philosophy, consumers truly feel assured to buy our car, with our car at ease.

Another initiative is the establishment of dual-brand stores. Of course, the Peugeot and Citroen brands are still two separate brand identity. This is to reduce operating costs, so that dealers have more resources and effort to provide customers with better service. At present, the country has opened five pairs of brand stores, we will continue to promote this program, the ultimate goal is 80 percent nationwide storefront can achieve dual-brand operation. In fact, in Europe, this is a very common phenomenon, a car dealer can represent multiple brands, sales of several brands of stores close together, sharing other facilities after sales workshop.

PSA Group, how to plan the development of DS brand in China?

High Kai Lin: DS into China is not a long time, because the past few years, DS brand sales in China, the performance is not ideal, our partners mdash; mdash; Chongqing Changan intend to sell their shares. From the business point of view, we understand very well, thank Chongqing Changan support and help DS brand in the past few years. In any case, DS certainly will not withdraw from the Chinese. We will continue to develop long-term DS brand in China. We have existing 75000 DS user is responsible in China. Last week, DS brand in Paris ldquo related to electrification; E-DSrdquo; Experience Week, we invite the Chinese 25 DS brand dealers go to participate in this event, so that they experience the DS brand future development strategy.

in the future, in China, DS brand’s sales and marketing will be entirely the responsibility of the PSA Group. About the production, it was suggested to use the Dragon’s manufacturing capacity, it is indeed a possibility, but we have no plans to DS on DPCA production. We will be in 2020, the DS brand’s first pure electric car DS3 CROSSBACK E-TENSE imported into China and sold. In fact, DS brand in China, the goal is simple mdash; mdash; create influential in China’s auto market French luxury brand. Our business strategy in the new DS, it may be the use of digital operation strategy. Complete detailed information will be published early next year, we will tell you how to make the PSA Group DS brand in China to start again.

PSA Group and FCA Group is about to merge, What are the prospects?

High Kai Lin: This merger is only in the very early stages, from a real merger, there is still a long way to go. Of course, if you really realize the merger, the new group will become the world’s fourth largest automotive group in sales to more than 8.7 million units, under which there will be 14 car brands.

From the complementarity of the two sides of it, PSA Group in the European market performance is very good, FCA Group’s results in North and South America is very good. The two groups will produce synergies of about 3.7 billion euros after the merger. Of course, all this is based on the merger if it can ultimately successful.

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