Good morning,
I am really pleased to see you at this 2008 Paris Motor Show.
The Show is opening it must be said in a difficult context weighed down by many challenges and uncertainties:
- Uncertainties concerning growth and spending power
- Uncertainties linked to the financial crisis
- Challenges related to changing consumer trends and expectations, where the end-user rightly wishes to accommodate rising energy prices with greater awareness of environmental issues.
Having measured the extent of these challenges, PSA Peugeot Citroën is rising to them with confidence, for two reasons:
First, we are convinced that the car has a bright future.
Cars continue to meet the core need for mobility, are synonymous with both freedom and economic growth, and continue to enjoy a genuine dimension of pleasure. Above all, the car demonstrates day in, day out its ability to adapt, by lowering fuel consumption for instance and reducing its environmental footprint.
The second reason concerns PSA: our conviction is that the Group is well armed to take on all these challenges thanks to a few key strengths which are specific to us and which we have developed:
1) the progress momentum created by CAP 2010
2) the breadth and depth of the Peugeot and Citroën line-ups
3) true leadership in the field of clean and sober cars expressed through innovation and an extraordinarily rich offer
I’ll now make one or two comments about these 3 assets which, I am sure, will place us among the leaders in the sector.
1) 1st asset: the progress momentum created by CAP 2010
PSA is particularly armed to cope with today’s difficulties thanks to the launch, 18 months ago, of a wide-scale company mobilisation program: CAP 2010.
CAP 2010 means 180 improvement projects covering 4 key priorities: quality, costs, product and sales offensive
The relevance of this plan has been clearly confirmed by the tangible results already obtained:
�� 1st priority – QUALITY :
Our finest proof of progress: the successful launches of the Peugeot 308 and the Citroën C5 with a universally recognized standard of quality, by our customers first and foremost.
�� 2nd priority - COST REDUCTION :
In today’s climate, reducing costs is for us a strategic imperative. In 18 months, we’ve recorded around €2 billion of savings.
However, it is our "lean everywhere" approach that should really revolutionize working processes in the group. The aim of this initiative is to focus on the value that customers really expect.
I am looking forward to seeing great progress made in the not too distant future
.
�� 3rd priority – PRODUCT – INNOVATION :
Regarding our product and innovation plans, a strong momentum emerged during the sessions working on CAP 2010.
This drive has already enabled us to:
- Reduce time-to-market
- Increase the number of vehicle projects
- Imagine innovations which will bring a real difference to the market
In other words, we have embarked on a real product offensive and this movement will go on. I’ll come back over that in a few moments.
�� 4th priority – SALES OFFENSIVE :
Regarding Western Europe, the Group is resisting and defending its market share at close to 14%, in very unstable market conditions where there is a constant trade-off between volume and margins.
Outside Europe, we are basing our growth on:
- a sustained momentum in South America
- a scheduled acceleration in China
- our new industrial location in Russia
In conclusion at this point, half-way through CAP 2010:
In an economic climate much tougher than forecast when working out the plan, I am sticking to our objectives. We now have just over 2 years to succeed.
�� Our 2nd strength in the face of this tougher business environment: 2) An unprecedented array of vehicles
The impressive range of models in our product plan, reinforced by CAP 2010, is our main trump card and the result of a clear strategy:
It is about using the full potential of greater market coverage by playing on the clearly distinct identities of Peugeot and Citroën.
Our action is deployed in dual motion:
- brand differentiation by giving greater focus to their respective worlds: this work is well under way
- development of a product strategy following 3 main guidelines:
Renewed core range
A "premium" or "distinctive" vehicle range
An entry-range offer well-targeted according to the markets
The initial results of this new direction are there to be seen:
- The line-up diversity has never been seen before in the history of the two brands: around 50 silhouettes in 2010 compared with 40 in 2006.
- Our goal is to cover 90% of the European market’s needs versus 75% in the past.
- Our Mercosur and Chinese locations now have an R&D capacity and are able to develop local line-ups.
- Finally, the average age of our models is coming down: 3.9 years in 2007 compared with 4.5 years in 2006.
�� Finally, the 3rd strength of the Group: 3) An even cleaner offer which confirms our environmental leadership
The Group is in fact the "ecology" car champion in terms of CO2 emissions. Today it has the "cleanest" line-up in Europe.
Since 2006, we have sold every year over 1 million cars emitting less than 140g CO2. In the first half of 2008, this category represents almost 50% of our sales in Western Europe.
Consequently, PSA is the carmaker with the shortest way to go when it comes to achieving the CO2 objectives set by the EU.
This is the result of constant care and concern for the environment, which is at the heart of our technical choices and product drive.
�� We intend to go on amplifying this leadership In our minds, all customers have mobility requirements specific to their lifestyles and adapted to the geographic region where they live. As a consequence, we need to be capable of proposing the best economical choice in terms of fuel / technology/ use.
The group therefore intends to maintain its leadership by proposing: "more ecological vehicles for everyone"
This approach, which can be seen through the stepping-up of R&D programs focused on reducing CO2, follows 4 main lines of action:
• 1st main line – work on the core range :
After renewing diesel engines, we’re accelerating the range of petrol engines starting with THP engines.
Last April we announced the launch of a new family of petrol engines. Available in 2011, this will be a range of small, 1-litre 3-cylinder engines, particularly economical.
The aim is to offer the market vehicles emitting under 100g of C0² per km with no extra technology.
• 2nd main line – micro-hybrid technology for everyone :
Adapted to the economic capacities of a generalist carmaker’s customer base, the huge development of the micro hybrid Stop & Start system will be launched:
o from 2010 for virtually the whole Peugeot and Citroën range
o both petrol and diesel.
o with volumes exceeding 1 million vehicles in 2011
The technology chosen is the second-generation reversible alternator, i.e. a higher-performing version than the one already equipping the Citroën C2 and the C3.
This technology is:
- faster at re-ignition
- and enables energy recovery when the vehicle brakes or slows down
�� The C3 Picasso Stop&Start -110g of CO2- and the Peugeot 308 Stop&Start -109g of CO2- on display at this Motor Show are equipped with this.
• 3rd main line – HDI full hybrid technology for 2011 :
PSA is a strong believer in this technology whereby the low consumption intrinsic to HDI diesel on roads and motorway can be combined with the appeal of hybrid solutions in urban or suburban areas.
We have therefore decided as of 2011 to roll out an HDI full hybrid diesel range accompanied by a true innovation: "HY motion 4" technology,
Here are the technical principles:
o a 2l HDi FAP diesel engine in front
o an electric motor on the rear wheels
o a high-powered Stop and Start
o an electronic gear-box
This world-exclusive presentation of "HY motion 4" technology by the PSA Peugeot Citroën group spells a true breakthrough in terms of fuel consumption and CO2 emissions.
The application itself will equip "distinctive" vehicles and provide exceptional services:
- an unparalleled chain of productivity in terms of consumption-performance balance:
o an average consumption of 4.1l for cars like the high-performance "high density" Peugeot Prologue Cross-over (200hp)
o 30% savings in consumption or an average saving of 2l per 100km for 109g of CO2 emitted
- A choice of operating process:
o the "normal" hybrid mode
o or a purely electric low-speed mode
o or a 4x4 mode, offering AWD comfort and safety
o a Sport mode adding an electric couple with thermal power.
�� 2 cars equipped in this way are on display at the Motor Show, the Peugeot Prologue and the Hypnos concept by Citroën
Later, when hybrid costs get closer to the economic threshold acceptable by the majority of our customers, hybrid diesel technology will equip mass-produced mid-range vehicles.
Finally, the Group has begun thinking more long-term about extending hybrid technology to petrol versions and high-performance vehicles.
Three vehicles illustrate these considerations on our stands:
- a Peugeot RC concept, 4 doors, high-performance AWD hybrid petrol technology
- the 908 hybrid
- the C4 WRC hybrid
• 4th main line – The preparation of future ZEV vehicles
Research on electric cars, a field in which PSA has been a pioneer, has been given a new impetus. In this way, we announced in June a feasibility study to cooperate on electric powertrains with Mitsubishi.
We believe that the Electric Vehicle will initially be introduced via the car-fleet market. Our bid to the French mail company, La Poste, goes in this direction.
At the same time, to extend the use and accessibility to the General Public, we are working on a Versatile Electric Vehicle which will be a "hybrid plug-in", more affordable than a purely electric vehicle and with the ability to be driven in ZEV mode in towns. This will be a gradual and natural transition towards the all-electric vehicle.
Finally, we are also continuing our research work on fuel cells for a more distant future.
Conclusion
As you can see, the PSA Peugeot Citroën Group is fully aware of today’s challenges and has positioned itself to meet them, by capitalizing on its strengths:
- CAP 2010 represents an excellent anti-crisis weapon which we intend to reinforce by accelerating our mobilisation in terms of organisation and costs.
- Our product/marketing approach will give Peugeot and Citroën a real boost, such an array of line-ups having never been seen before
- Stronger leadership in low-consumption, environmentally-friendly cars places us at the heart of today’s consumer trends
The evidence: you’ll see this on the Peugeot and Citroën stands which will be presented now by the brand MDs.
Let me now hand over to Gilles Michel, Managing Director of Citroën who will talk to you about the latest models from Citroën. Then, we’ll all go over to the Peugeot stand for the presentation of Jean-Philippe Collin, Managing Director of Peugeot.
Thank you.
- Peugeot - Citroen
