“We want to be a great car maker, not the biggest one, but the most efficient car maker in the world”.
Tavares claims PSA has achieved its objectives of improving market share in “all the major markets in Europe” and made significant improvements in customer satisfaction, claiming it's in the top four in Europe for sales satisfaction and that, according to analysis firm JD Power, Peugeot is the UK’s most reliable brand.
Strong performance despite multiple market and industry challenges
However, Tavares acknowledged significant global challenges, including the fact that PSA's market share has more than halved in China down to 0.5%. The slump in diesel sales, a huge ongoing investment in electrifying its model line-up and “significant” over-capacity issues in factories such as Britain's Ellesmere Port are also highlighted.
The CEO took the opportunity to criticise global market regulators, such as the EU, for creating a situation of “regulatory chaos”.
He said: “We are in a situation where there is no notice of regulatory changes. How do we know that in a number of years somebody will impose on us another technology? We have been imposed a certain kind of technology that needs a huge financial investment and there is significant risk”.
On the EU’s decision to impose a fleet average target of 95g/km of CO2 emitted by 2021, Tavares says PSA is “fully on track”.
Analysis: how will carmakers meet new CO2 laws?
“It's clear that companies that did not prepare for the European CO2 rule changes will be in trouble. We have been working on it for 18 months. We are also well prepared for the WLTP changes”.
PSA is on track to have 29% of its line-up electrified by 2020 and 100% of it electrified by 2025. However, Tavares also confirmed there will be a further reduction in “diversity and complexity” of PSA’s model range.
The brands have a combined 62 models on the market in 2019, but that will be reduced to 49 this year. The target is to have 41 models on sale by 2025 across all brands. Tavares also said he has “one model in the CEO’s pocket” for a brand halo flagship of some sort that will be detailed “later on”.
The UK needs to “hurry up” and resolve Brexit, says PSA CEO
Tavares also launched a frank assessment of the UK’s handling of the Brexit negotiations, saying that leaving the EU without a deal “can't be considered”.
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