Groupe PSA’s Automotive Growth Strategies, 2019–2025
Groupe PSA has gained significant attention from the automotive industry, with its turnaround from loss making to generating profit. Since then, the company has shown impressive growth, with 35% revenue increase from 2014 to 2018, and became the second largest OEM in Europe in terms of passenger vehicle sales. It also acquired another loss-making automotive group Opel and Vauxhall from GM and turned it around.
In 2018, Opel Vauxhall added €18.3 billion to the group’s revenue and more than 1 million vehicles sales. This increased group’s total sales volume to 3.8 million. Addition of Opel Vauxhall has strengthened the group’s sales volume and provided opportunities for its UK entry. PSA, after its resurgence from financial crisis, has emerged as a competitive OEM, giving competition not only to European participants but also to the global ones. To grow sustainably, PSA has designed a 3-phase growth plan for itself called “Push to Pass Strategy”. It has a fundamental role in making the group strong enough to compete against the competition. It has successfully achieved phase I objectives and is entering in the phase II in 2019. This study analyzes in details PSA’s Push to Pass strategy, discusses PSA’s performance till date, and its future development strategies. As per PSA’s 2018 target, the group surpassed its target of 10% group revenue increase (against 2015) with almost 35% increase, highest among the top 5 European automakers during the period 2015 to 2018. Successful implementation of Phase I of Push to Pass has made PSA not only the second bestselling PV automotive group in Europe but also the lead OEM in the LCV segment, indicating the group’s stronghold over the European market. PSA’s focus is on seven Mega Trends that have disrupted the automotive industry and build products and services around them. With consistently positive financial results and 70 regional launches in 2 years, PSA, along with Opel Vauxhall, is moving toward sustainably competitive global automotive OEM.
With Push to Pass II, PSA aims to improve its product quality, adopt new technologies, offer mobility services, and expand to new geographies to become a global vehicle manufacturer.
PSA’s vision to not restrict its growth to Europe but establish itself as a global mobility company requires strong brands, huge investment in CASE technologies, and visibility of its businesses across the globe.
Future of group PSA:
In 2019, PSA entered phase II of its Push to Pass strategy. Highlights of phase II Push to Pass, 2019–2021 are:
Focus on LCV growth
Execution of India entry plan
Establish new mobility services
Strengthen aftermarket business
Key Issues Addressed
How PSA turned its loss into profits? How it revived Opel Vauxhall?
What are the key highlights of PSA's Push to Pass strategy? What impact it will have on PSA’s future growth?
What is PSA doing in terms of product development, platform development, and powertrain development?
What are the future strategies of the group in terms of partnerships, M&As, and collaboration?
What are the challenges before the group, and how it plans to overcome them? How BREXIT and other geopolitical changes will impact PSA’s operations?
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