PSA Peugeot Citroen Reducing Model Range From 45 To 26: Video Photo:
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Trevor Collett | Apr, 24 2014 | 4 Comments

PSA Peugeot Citroen has outlined its ‘Back In The Race’ plan this week, with a key change being a shift from the current 45 model range down to 26.

New PSA boss Carlos Tavares revealed this week that the main focus is to turn the company around from “an economics viewpoint”, declaring cash-flow would be positive by 2016.

Mr Tavares said the plan encompasses four key points, including the continuation of the current three-brand approach to the market; Peugeot, Citroen and the recently detached premium DS brand.

The second and perhaps most important point is a focus on the “creative energy” of the design team, by giving them a smaller portfolio of vehicles.

Mr Tavares said the carmaker would focus on the models “that people want to buy” - a plan first outlined in February - adding the company could do a better job if it had fewer models in its arsenal.

The plan is to progressively reduce the current range of 45 models down to 26, with Tavares saying the remaining line-up would offer more competitive and attractive products.

Citroen C4 Cactus
Citroen C4 Cactus

“The group will continue to reposition the three brands, while clarifying their line-ups to ensure their complementarity, and will improve their price positioning,” Peugeot said in a statement.

“The group’s line-ups will be gradually streamlined to 26 models by 2020. By focusing on a more compact range, PSA Peugeot Citroën will be able to improve market coverage and improve margins by targeting the most profitable segments.”

Profit is indeed the third point in the four-point plan, with Tavares saying the group is aiming to grow profits in every market where it currently sells cars, using its success in China as a reference.

Finally, PSA Peugeot Citroen is aiming to “modernise” its manufacturing processes, focusing on higher efficiency and improving quality.

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Peugeot's 308, which recently won European Car Of The Year
Peugeot's 308, which recently won European Car Of The Year

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