PSA Peugeot Citroën
|Trading name||PSA Peugeot Citroën|
|Founded||Paris, France (1976)|
|Area served||Worldwide except United States, and Canada|
|Key people||Philippe Varin (CEO)
Thierry Peugeot (Chairman of the supervisory board)
Automotive parts (21%)
|Production output||2.97 million units (2012)|
|Revenue||€55.446 billion (2012)|
|Operating income||€-4.698 billion (2012)|
|Net income||€-4.925 billion (2012)|
|Total assets||€68.49 billion (end 2010)|
|Total equity||€10.557 billion (2012)|
|Employees||117,541 Automobile division (end 2012)
202,108 Company total (end 2012)
PSA Peugeot Citroën (officially Peugeot S.A., informally PSA) is a French multinational manufacturer of automobiles and motorcycles sold under the Peugeot and Citroën marques. PSA is listed on the Euronext Paris stock exchange and is not a constituent of the CAC 40 index.
Headquartered in the 16th arrondissement of Paris, PSA (with 2.9 million units) is in 2012 the second-largest Europe-based automaker after Volkswagen Group (9.2 million units), and the 9th largest in the world measured by unit production (6th in 2009).
- 1 History
- 2 Operations
- 3 Joint ventures and collaborations
- 4 Locations
- 5 Vehicles
- 6 See also
- 7 Notes
- 8 External links
In December 1974 Peugeot S.A. acquired a 38.2% share of Citroën. On 9 April 1976 they increased their stake of the then bankrupt company to 89.95%, thus creating the PSA Group (where PSA is short for Peugeot Société Anonyme), becoming PSA Peugeot Citroën. Since Citroën had two successful new designs in the market at this time (the GS and CX) and Peugeot was typically prudent in its own finances, the PSA venture was a financial success from 1976 to 1979.
In late 1978, PSA purchased the failing Chrysler Europe (which was formerly Rootes and Simca), from the troubled U.S. parent firm for a nominal USD $1.00, plus assumption of outstanding debt, leading to losses for the consortium from 1980 to 1985. Further investment was required because PSA decided to create a new brand for the entity for the disparate French and British models, based on the Talbot sports car last seen in the 1950s. From then on, the whole Chrysler/Simca range was sold under the Talbot badge until production of Talbot-branded passenger cars was shelved in 1987 and on commercial vehicles in 1992.
All of this investment caused serious financial problems for the entire PSA group; PSA lost money from 1980 to 1985. In 1986, the company dropped the Talbot brand for passenger cars when it ceased production of the Simca-based Horizon, Alpine and Solara models. What was to have been the Talbot Arizona became the 309, with the former Rootes plant in Ryton and Simca plant in Poissy being turned over for Peugeot assembly. Producing Peugeots in Ryton was significant, as it signalled the first time that PSA would build cars in the UK. The Talbot name survived for a little longer on commercial vehicles until 1992 before being shelved completely.
On 29 February 2012, PSA formally announced the creation of a major alliance with General Motors (GM), as part of which GM became PSA's second-largest shareholder, after the Peugeot family, with a holding of 7%. The alliance is intended to enable $2 billion per year of cost savings through platform sharing, common purchasing and other economies of scale.
In July 2012, a union official said that PSA Peugeot Citroen will cut as 10 percent (8,000-10,000) of its French workforce of 100,356 employees on permanent and temporary contract. The jobs cut is more than previously announced.
On October 24, PSA said it was close to an agreement with creditor banks on 11.5 billion euros ($14.9 billion) of refinancing and had won state guarantees on 7 billion euros in further borrowing by its Banque PSA Finance. In that same year, PSA Group along with other major European car makers was under pressure by the European Union, the United States, and its partial owner General Motors, to leave Iran, in which forced PSA Group to end their partnership with Iran Khodro and leave the country. And in doing so, PSA ended up losing revenue rapidly.
CEO Philippe Varin says that "Citroën and Peugeot are too close", so he plans on positioning Citroen C-line models lower than Peugeot with DS models above Peugeot.
On 12 December 2013, General Motors announces it is selling its entire 7% stake in PSA Peugeot Citroën.
On January 2014, DongFeng Motors, the Chinese manufactor with which PSA sells cars in China, and the French government said that they take both 13% of PSA, downing the Peugeot family from 35% to 25%.
The Peugeot and Citroën brands retain separate sales and marketing structures, but share common technology, development and assembling assets.
PSA is actively committed to develop its market presence and sales in many fast growing developing countries and regions of the world. This led to huge investments and partnerships in South America, Iran (Iran Khodro) and China (Dongfeng Peugeot-Citroën Automobile). It announced plans to invest € 650 million in a manufacturing plant in Sanand, India. With a capacity of 170,000 vehicles, the Sanand plant is expected to be operational by 2014. In Kazakhstan, assembly of the Peugeot passenger cars will start in June 2013 with a production capacity of 4,000 units per year at the beginning and more than 10,000 units in the near future.
Jean-Martin Folz was PSA's CEO between 1996 and early 2007, when he was replaced by former Airbus head Christian Streiff. Streiff was sacked on 29 March 2009, a day after the company posted a full year loss for 2008. Streiff was replaced by Corus Group chief executive Philippe Varin.
Peugeot Citroën Automobiles SA
The manufacturer of Peugeot and Citroën branded cars and vans, 100% owned by PSA Peugeot Citroën and formed from the combination of Automobiles Citroën and Automobiles Peugeot. Automobiles Citroën and Automobiles Peugeot remain in operation in relation to specific retail operations in various countries but not in the development or manufacture of vehicles.
Peugeot Citroën Moteurs
Peugeot Citroën Moteurs is a manufacturer of petrol and diesel engines for a range of companies including Citroën, Ford, Jaguar, Mini and Peugeot. Initially founded by Peugeot in 1898 in Lille and subsequently named Compagnie Lilloise de moteurs (CLM). In 1992 SCM-CLM as it was then known became Peugeot Citroën Moteurs.
Process Conception Ingénierie
Peugeot Motocycles is 99.9% owned by PSA and manufacturers a range of mopeds and scooters. The subsidiary owns 50% of the Chinese Jinan Quigqu Peugeot Motocycles joint venture.
PSA owns 57.43% of automotive supplier Faurecia, a company created by a 1997 merger between Bertrand Faure and PSA-owned ECIA. It provides various components to Citroen and Peugeot together with significant interior and exterior parts to companies such as Audi, BMW and Mercedes-Benz.
Gefco is a large international logistics company, established by Peugeot in 1949 and was originally named Les Groupages Express de Franche-Comté. In November 2012, PSA sold a 75% share to Russian Railways (RZD) for €800m.
Former marques and subsidiaries
A number of marques were inherited following the acquisition of Chrysler Europe in 1978, and some were merged to re-establish Talbot, a previously dormant marque. Chrysler marques included the British Sunbeam (1901–1976), Humber (1868-1976), Singer (1905–1970), Commer (1905–1979), Hillman (1907–1976), Karrier (1908–1977), the French Simca (1934–1977) and the Spanish Barreiros (1959–1978)
Cycles Peugeot produced bicycles from 1882 until 2005. In 1987 ProCycle of Canada acquired rights to distribute French-made Peugeots in North America and in 1990, Cycles Peugeot sold the North American rights to market bicycles under the Peugeot name to the Canadian firm ProCycle. In 2001, ProCycle discontinued the Peugeot bicycle brand. In Europe, the license to produce Peugeot-branded bicycles was sold to Cycleurope, a company making bicycles under different names, on condition that it would be reconsidered in 2004. That license was later withdrawn for Europe, though production of bicycles for export continued for another year.
Joint ventures and collaborations
Seval (Société Européenne de Véhicules Légers SA and Società Europea Veicoli Leggeri-Sevel S.p.A.) was established in 1978 and is equally owned by Peugeot Citroen and Fiat. As a result of this, two factories have been built assembling three ranges of vehicles, Sevel Nord and Sevel Sud. Peugeot and Fiat's Argentinian operations were also joined under the name of Sevel Argentina S.A. (Sociedad Europea de Vehículos para Latinoamérica), although Fiat withdrew in 1995. Currently Sevel builds the Fiat Ducato, Peugeot Boxer and Citroen Dispatch vans.
Dongfeng Peugeot Citroën Automobile Company
The joint venture with the Chinese company Dongfeng was established in 1992 and produces the 207, 307 and 408 models at factories in Wuhan and Xiangyang.
Toyota Peugeot Citroën Automobile
In 2002, the joint venture with Toyota Motor Corporation for the development and manufacturing of a series of city cars in a new factory in the Czech Republic was signed. The resulting company is called TPCA (Toyota Peugeot Citroën Automobile) and it currently manufactures the Citroën C1, Peugeot 107 and Toyota Aygo.
Peugeot Citroën Mitsubishi Automotiv Rus
The Kaluga factory was built by the Russian based joint venture between PSA Peugeot Citroën (70%) and Mitsubishi Motors (30%) established in 2011. The site builds the joint venture Peugeot 4007, Citroën C-Crosser and Mitsubishi Outlander, and the Peugeot 308 and Citroën C4.
BMW Peugeot Citroën Electrification
In 2011, PSA Peugeot Citroën and BMW agreed an equal joint venture to develop and manufacture hybrid components including battery packs, generators, power electronics and chargers, and software for hybrid systems.
Changan PSA Automobile
In 2008, the company investigated the option to buy Mitsubishi Motors but a deal could not be concluded and was called off in 2010. One outcome of the talks resulted in the Mitsubishi Outlander and Mitsubishi i-MiEV to be sold as Peugeot and Citroen in Europe.
Former joint ventures
- Guangzhou Peugeot Automobile Company (GPAC) was in operation from 1985 to 1997 and produced the Peugeot 504 and 505.
The head office of PSA Peugeot Citroën is located in the 16th arrondissement of Paris. The 50,000-square-metre (540,000 sq ft) 1961 building houses around 2,000 employees. 900 square metres (9,700 sq ft) of space in the lobby includes an automobile showroom.
Notable vehicles and innovations
PSA Peugeot Citroën exhibited the "Hybrid Air" engine, an experimental petro-hydraulic hybrid, at the 2013 Geneva Motor Show. The engine is the result of a secret development project involving about 100 people. The basic technology is not new, it has been used in heavy vehicles such as garbage trucks or buses which frequently start and stop, but its application to passenger cars is. The vehicle uses nitrogen gas compressed by energy harvested from braking or deceleration to power an hydraulic drive which supplements power from its conventional gasoline engine. The hydraulic and electronic components were supplied by Robert Bosch GmbH. Production versions were scheduled for 2015 or 2016 to sell at about $25,000, £17,000. Mileage was estimated to be about 80 miles per gallon for city driving if installed in a Citroën C3.
European Car of the Year
- 1969 – Peugeot 504
- 1971 – Citroën GS
- 1975 – Citroën CX
- 1988 – Peugeot 405
- 1990 – Citroën XM
- 2002 – Peugeot 307
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