DS CEO sees big gains from FCA merger

Beatrice Foucher, a veteran Renault-Nissan alliance executive, was named CEO of DS Automobiles in January. She is taking over PSA Group's premium brand at a pivotal time. PSA's planned merger with Fiat Chrysler Automobiles would add a struggling premium brand to the combined company, Alfa Romeo, which could compete with DS for resources and attention. DS itself is just emerging from a sales drought that followed its transition into a stand-alone brand in 2014. Foucher shared her vision for DS with Automotive News Europe Associate Publisher and Editor Luca Ciferri and News Editor Peter Sigal.

Where does the DS brand fit into a merged PSA/FCA?

The first key point for me is that DS is a growing brand with great success in Europe, where sales increased by 17 percent last year, even with only two cars. There's no question about the future of DS. In addition, DS, like the FCA premium brands, will benefit from the merger because we will have a bigger basket of technology to choose from. And we know that technology development costs a lot, so having more brands to support that is a great opportunity for DS, as well as FCA's premium brands.

What is your ambition for the DS 9 globally and in Europe? Which competitors are you targeting?

The ambition we have is to be present in the premium D [midsize] segment in the markets where this silhouette is relevant. If we look at the figures, 25 percent of the global premium market is sedans, including in China and in Europe. That was the driver for DS to offer this body type as the third car in our new lineup [after the DS 3 Crossback and DS 7 Crossback SUVs].

Will the DS 9 be built only in China? Has the coronavirus outbreak affected the start of production?

It will be built in the Shenzhen factory [which was reopened in late February]. What we need to do now is accumulate the parts we need for the DS 9 to be produced, including components from suppliers that were halted due to the virus as well as some suppliers from outside the country. The ambition we have is that the DS 9 will be launched in the second half of this year.

What are your expectations for DS as a brand in China?

We know the battle in China is very tough for all automakers, including domestic ones. We will continue to operate there, producing and selling cars. Nothing will change except that PSA decided to sell the [Shenzhen] plant and operations to another company [Baoneng Investment Group]. We will continue our business there, because we believe in the potential of the cars we have in our lineup.

What percentage of your overall sales is electrified?

For the DS 7 E-Tense [plug-in hybrid] it's 30 percent. On the [full-electric] DS 3 Crossback we are running at 18 percent, which is also huge.

Do you have enough battery cell supply and production capacity to maintain that level of full-electric orders?

The trend we anticipate is between 15 percent and 18 percent for the DS 3 Crossback. We secured the battery sourcing to achieve this kind of mix.

In France, the full-electric DS 3 Crossback is 315 euros a month with an 8,500 euro first-month payment as part of the Free2Move three-year lease. How many customers are picking this versus purchasing the car?

It's a way for customers to test the car. That way they are reassured about how to use the car and how to charge the cars. Customers who can afford to buy an electric car are not so young, so some are reluctant to purchase. We need to be flexible because each case is different.

The Aero Sport Lounge concept is a vision of a future full-electric midsize SUV. How close is it production?

I would say it's a new direction but it doesn't cancel what's come before it. The Aero Sport Lounge is smaller in order to be more efficient and have a lower drag coefficient. We worked with the airflow to be as aerodynamic as possible. The automotive industry's new challenge is to save energy because batteries are expensive and heavy. The fewer we put in the car the more efficient we are.

Is it built around a PSA Group platform or is it a pure concept?
When we build a concept car we look to the basket of technology that we have, including the powertrain and the platform. The Aero Sport Lounge is based on the biggest platform we have in PSA Group (EMP2, for compact and larger vehicles), so it is a technical reality.