Groupe PSA increases SUV production capacity in Europe

Following the success of the SUV offensive led by its five brands, the Group is increasing SUV production capacity in Europe to meet market demand

Conditions are now in place to achieve the highest levels of performance and quality in each of the plants concerned


Implementing these projects will ensure high capacity utilisation in each plant in the coming years

 

The product offensive launched as part of the Push to Pass plan’s Core Model Strategy has led to the recent introduction of 11 SUV models by the Group’s five brands – Peugeot, Citroën, DS Automobiles, Opel and Vauxhall – together representing 250,000 registrations in Europe in the first quarter of 2018. Over the same period, the Group’s share of the European SUV market has risen sharply, to 16.9% beginning of 2018.
As of end-March, the Group was among segment leaders and the offensive was being pursued, with the upcoming roll-out of the Citroën C5 Aircross in September in Europe.

To support the rapid and sustained growth in sales and maintain its industrial agility, which is a strong performance driver, the Group has decided to increase its SUV production capacity in Europe, using all its available resources and assets:
– Citroën C5 Aircross starts its production in Rennes (France) , along with the Peugeot 5008
– As a result, as soon as the production in Rennes reaches its full capacity, the Peugeot 5008 will be added to the Peugeot 3008 and the Opel Grandland X line in Sochaux, France, from March 2019.
– Lastly, as soon as the production in Sochaux plant reaches its full capacity, the Opel Grandland X will be progressively assembled in Eisenach, Germany as from mid-2019.

The industrial launch will be supported by appropriate investments, which will enable each plant to deliver excellent performance, high output and superior quality.

These production allocations, which were made possible by the performance plans, will be carried out in accordance with the undertakings in the New Momentum for Growth agreement, signed in July 2016 by five out of six French trade unions, and will maintain production in France at one million vehicles.

The new allocations also reflect the agreements negotiated with employee representatives in Germany as part of the Opel/Vauxhall performance plan.

Yann Vincent, Executive Vice President, Manufacturing & Supply Chain: “These vehicle allocations demonstrate that economic performance plays a key role in ensuring high capacity utilisation over the long term. Our agile production base, which has been broadened by the Opel acquisition, is enabling us to meet growing customer demand for SUVs.”

Opel-Vauxhall CEO, Michael Lohscheller: “The production of the Grandland X in Eisenach plant demonstrates Groupe PSA’s will to invest in Germany and its trust in Opel. It will help us to become profitable, electric and global”.

 

Olivier Bourges, Directeur des Programmes et de la Stratégie :

“In 2017, SUVs made up more than a third of the car market in Europe and China, which explains why the segment is so important. With the Push to Pass plan, our product offensive has sought to leverage this trend: we have recently launched 11 SUVs worldwide in. All of these models are successes: the Peugeot 3008/4008 and 5008, the Citroen C3 Aircross/C4 Aircross, C5 Aircross and DS 7 CROSSBACK, not to mention the Opel/Vauxhall Grandland X and Crossland X.”

“In 2017, Groupe PSA sold nearly 800,000 SUVs worldwide, nearly 600,000 of which in Europe, putting us in second place behind the VAG Group, whereas we ranked fifth in 2016 (ed. behind VAG, Renault, Nissan and Hyundai-Kia). Our momentum is also impressive. First, because between 2016 and 2017 we doubled our SUV sales, bringing our market share in the segment up from 6.7% to 11.1%. But also because the sales offensive has continued in early 2018: with more than 250,000 registrations by end of March 2018, we have held on to our second place in Europe, ranking first in the B-SUV segment and second in the C-SUV segment. Our market share is 16.9% across all SUV segments by end of March 2018.”

“This means that Groupe PSA is enjoying the strongest growth in this segment.”

“Our five brands are well represented.”

“The momentum is particularly striking for the Peugeot brand, whose SUV models are enjoying strong sales in China, Africa-Middle East and Latin America, but also and above all in Europe, since Peugeot, runner-up in 2017, has taken the lead in the SUV segment since the start of the year, selling nearly 80,000 SUVs in January and February. Our growth is being led by the 2008, ranked second in the B segment and by the 3008 and 5008, ranked second in the C segment.

Opel is also in the race: in the B segment, the brand is leader in Europe with the Crossland X and Mokka.

For Citroën and DS, the recently launched DS 7 Crossback and C3 Aircross in Europe and C5 Aircross in China are already showing encouraging signs.”

“In any case, 2018 will benefit from the full-year SUV effect, and will also see an additional offering rolled out in this segment, where our Group has already proved itself.”

“Our SUVs are also winning over customers in new markets. The Peugeot 3008 and 5008, for example, are now being produced and marketed in Vietnam, and in the Middle East-Africa region, the 3008 was named “Public Car of the Year” at the 2018 Middle East Car of the Year Awards. In addition, the C3 Aircross, which is already on the market in Europe, will also be launched in Latin America and Eurasia as well as China/ASEAN, in a long wheelbase version called the C4 Aircross.

Lastly, the DS 7 Crossback will be gradually rolled out in all of the Group’s regions.”