The Rise of PSA?



Peugeot Fractal concept

It’s perhaps no surprise that France’s home-grown car brands were out in full force at the recent Paris Motor show. Renault, Peugeot, Citroen and DS were all present and correct with extensive stands drawing plenty of attention. 
As I was doing the rounds, getting immersed in the latest launches and show hubbub, I got to thinking how there seems to be growing confidence emanating from the three brands of the PSA Group, custodians of Peugeot, Citroen and DS Automobiles respectively.
It was only a few short years ago when PSA boss Carlos Tavares ushered in a drastic plan boldly labelled ‘Back in the Race’ following billion euro losses and a part-bailout by Chinese automotive concern Dongfeng along with the French government. Each bought a 13% stake in the French automaker. The plan brought about substantial cost cutting across the group along with a restructuring that set about focussing on the group’s core model range whilst increasing global vehicle platform efficiency.



Peugeot 3008

Fast forward to earlier this year and Tavares hailed the success of ‘Back in the Race’ with group profits announced bringing the company back into the black. The company admitted that this success had come earlier than expected thanks to tough decisions being made and a global determination to get the automaker back on top. PSA is said to be in a far more healthy position now with the announcement of the group’s second plan, ‘Push to Pass’.
In the words of Tesla, this 'plan part deux' is expected to focus on growth, aggressive product positioning and eventually a possible return to the US market, (the last time PSA were present in North America was with Peugeot in 1991).
After a brief look at Suzuki, (not sure about their new Ignis), I hopped over to Peugeot. My perception is that Peugeot out of the three PSA brands is the one where it needs to be in terms of their product offering. They have the youngest range out of the three with the oldest model being the 2011 508 saloon/SW. What’s more important is that Peugeot is attempting to head upmarket to become a semi-premium brand in the same mould as Volkswagen. This is especially important for PSA as it’ll allow Peugeot to successfully charge higher transaction prices and therefore create greater margins per unit sold.

 

Peugeot 5008

The buzz was all around the firm’s new 3008 and 5008 SUVs, two models that will be extremely important to Peugeot sales and their move upmarket. Out goes the rather frumpy design of the old 3008 crossover and rather plain 5008 MPV and in comes true SUV styling with both models appearing confident and contemporary within this most important of sectors. More consumers than
ever are being turned on by premium looking products; particularly towards the added high set security of SUVs. 
What impressed me most about this duo were their interiors with both sporting Peugeot’s second generation i-Cockpit dashboard architecture. Both featured high quality materials with a clean, uncluttered look. The classy look is heightened by the fitment of a fully digital instrument cluster, a clear nod to Audi. In fact I’d go so far as to say the interior cockpit design of these two SUVs are on a par with models from Ingolstadt.

Citroen C3

Next visit was to Citroen which has more work to do in terms of their overall range. A number of them are really showing their age, (I’m thinking C4 & C5) and are now well past the class best. What’s interesting is where Citroen's heading. The brand is beginning to show real confidence, particularly following the launch of the C4 Cactus of 2014.
Now headed by Brit Linda Jackson, Citroen unveiled the new C3 in Paris and it was evident that it’s a stand-out model due to the numbers of showgoers surrounding the new supermini. Citroen needs to be distinctive and the brand is due to focus on comfort and useful technology rather than sportiness or chasing premium aspirations. 
Despite this, Citroen are sticking with rallying. The new C3 WRC looked rather mean; hunkered down ready to do battle in next year’s campaign. It’ll certainly have some stiff competition from the likes of Hyundai, Toyota and Volkswagen. Citroen has historically missed a trick with their earlier dominance in WRC with little of their successes filtering into the brand’s offerings. In fact, the only car that springs to mind was the C4 by Loeb special edition; a rather lukewarm effort to say the least.

Citroen C3 WRC

There's still a couple of anomalies with Citroen. The first is the lack of any SUV in the range, an area where Citroen is really missing out on what with the huge sales volumes that this sector brings. I reckon Citroen could do with bringing their Aircross SUV concept into production sooner rather than later. The second is that of the EV. While many brands are starting to offer mainstream electric hatchbacks to tempt people into the growing world of alternative power, (think Nissan Leaf, Renault Zoe, Hyundai Ionic), Citroen puts its efforts into the e-MEHARI, something of a niche/niche offering if ever there was one. Its wipe down interior and basic design may find favour with Mediterranean city based rental agencies, but is unlikely to find widespread appeal elsewhere.

Citroen Cxperience concept

Finally to DS, or DS Automobiles to give it its full title. PSA’s new premium brand is a great idea and compliments the three prong brand strategy by allowing PSA to get a foothold in the lucrative upmarket sector where they hope to be rewarded with high profit margins per unit. It’ll be a slow burner though. At present, the DS 3, 4 and 5 are essentially facelifted Citroens with the first all new DS models not expected to come onto stream until 2018. Still, from small acorns… 
The DS E-Tense concept that debuted in Geneva was present which gives a clue as to where PSA wants to see the brand end up. A high performance electric powertrain powers the concept which to my eyes looks extremely handsome, despite the name sounding like a suppository brand...
As for their stand; it reminded me of Abercrombie and Fitch; all dark, boutique-like and smelling of high end cologne, albeit with no topless male models to be seen.

DS E-Tense concept

Time will tell if PSA are on the right track to long term sustainability and success. If Push to Pass along with the manufacturer’s latest offerings is anything to go by, PSA might just find a secure future ahead yet…