Acquisition of the Opel and Vauxhall brands, birth of a European champion
For Groupe PSA, 2017 was shaped by the acquisition of two iconic German and British brands, Opel and Vauxhall. The Group ended 2017 much stronger as a result, with an enhanced portfolio of five car brands and the addition of a mobility services brand.
The acquisition led to the birth to a European champion. The Group’s sales in Europe rose by more than 23% compared with 2016, enabling it to consolidate its position as Europe’s second-largest carmaker. The Group also extended its lead in the European light commercial vehicle market with Peugeot and Citroën, achieving market share of 20.2%.
In just 100 days, the Opel and Vauxhall teams put together a turnaround plan known as PACE!, which will make Opel/Vauxhall profitable, electric and global.
Record-high sales and financial results in 2017
Worldwide sales accelerated sharply (for the fourth year in a row), increasing by 15.4% (Opel/Vauxhall included). The Group set two all-time records in 2017, in terms of light commercial vehicle sales and Peugeot brand sales. Growth in sales was achieved in all markets across the world, with the exception of China and Southeast Asia, which nevertheless showed the first signs of a sales recovery in a fiercely competitive environment.
In its historical Peugeot Citroën DS (PCD) business, Groupe PSA delivered record financial results in 2017, with a recurring operating margin of 7.3% in the Automotive division placing it among the top 5 global carmakers and revenue growth of nearly 10%.
Groupe PSA on track to meet the challenges of tomorrow
Opel’s R&D expertise presents Groupe PSA with the opportunity to continue diversifying its technological offering in a constant commitment to controlling and optimising R&D expenditure. The development of innovative, efficient and useful technologies is on track, with the ramp-up of electric technologies, launch of the Autonomous Vehicle for All programme and mobilisation of recognised expertise.
To improve customer service, the Group is revamping its points of sale to give digital technology pride of place and developing its online purchasing services. The Group is also stepping up its offering in the field of used vehicles, parts and services, and has launched a mobility services platform in the form of the Free2Move app, which provides access to the car-sharing services of some 20 operators. Already adopted by more than 600 000 users, Free2Move embodies the Group’s vision to become its customers’ preferred mobility services provider. The Group is also using the Free2Move brand to spearhead its return to the United States.
Groupe PSA, a company at the forefront of CSR
Over the years, the Group’s CSR commitment has become an integral part of its strategy, with CSR performance driving financial performance and vice-versa. This year, the Group announced targets for 2035 and 2050, in line with the UN Sustainable Development Goals. Agile initiatives thoroughly embedded in the Group’s strategic operations are paying off. The Group’s CSR performance has been widely applauded, allowing us to move into a sector-leading position in the Dow Jones Sustainability Index and become the only carmaker to be included in the Euronext-Vigeo World 120 Index. In addition, the Group features in world-class SRI indices, including STOXX and FTSE4Good.
Groupe PSA is also a responsible employer engaged in a process to build the future together with employee representatives, as evidenced by the recent signing of framework agreements in the countries where Opel operates, to ensure plant competitiveness.
Partial renewal of the Supervisory Board
A number of new members took seats on the Supervisory Board this year. Following the transfer of Peugeot SA shares by the French government shareholding agency (API) to Bpifrance and a reorganisation of responsibilities at Dongfeng Motors Group (DFG), Anne Guérin, Daniel Bernard and An Tiecheng have joined the Supervisory Board as members, and Lu Haitao and Alexandre Ossola as non-voting members.
I am proud to be starting a new term as Chairman of the Groupe PSA Supervisory Board.