PSA Peugeot Citroën has announced that it will axe more than 40 percent of its models by 2020 as part of its group recovery programme. Company chief Carlos Tavares said the models will be “gradually streamlined” over the coming years, a move that will allow the firm to focus on more profitable segments.
Tavares said that reducing the company's model portfolio from 45 to 26 will allow the firm to improve market coverage and optimise the use of vehicle platforms to allocate research and development spend more efficiently. Tavares also revealed that PSA will further develop DS as a “full-fledged” premium brand. DS, alongside Citroën and Peugeot, will be repositioned to ensure the ranges of the three brands ranges are complementary.
PSA said it will continue to accelerate expansion in China by tripling volumes with joint-venture partner Dongfeng in 2020 and growing the DS brand. It said it will return its Russian and Latin American operations and will “seek expansion opportunities” in new regions, including Africa and the Mediterranean basin.
In order to address what Tavares described as "competitiveness challenges”, PSA will accelerate its modernisation of its production plants in an effort to reduce costs.