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Supplying PSA Peugeot Citroën

  • May 2014
  • -
  • Supplier Business
  • -
  • 116 pages

Understanding the purchasing and production operations of global OEMs is increasingly important for suppliers, as they face increasing platform consolidation and intensifying competition for new business
IHS SupplierBusiness' new Supplying PSA Peugeot Citroën report provides a unique insight into the environment in which the OEMs make their critical sourcing decisions. The report analyses the ways in which PSA Peugeot Citroën is moving forward in terms of models and technology and looks in-depth at what issues are affecting the OEM in terms of supply and manufacturing.

The report is based on interviews with key purchasing executives, featuring IHS Automotive’s industry standard forecasting and analysis on the following topics:
Product and Platform Strategy
Production Strategy
Purchasing Strategy
Supplier Selection
Global Sourcing
Pricing Policy
Quality Management
Technology Development
Interviews with Key Executives
OEM-Supplier Relations Survey Results
SWOT Analysis
Global Footprint
Forward Model Programme

About this report

PSA Peugeot Citroën has problems. Vehicle sales across Europe are stagnant, which has meant that the Euro-centric company has needed to urgently deal with over-capacity issues. This is particularly true in the home market of France, where the Aulnay plant was closed in 2013 and other individual production lines could still be shut down as the OEM looks to ‘right size’ output.

But, there are two sides to the story. Although PSA is being negatively affected by the situation in Europe, the carmaker is set to kick off an aggressive period of growth in China, still the largest and strongest new car market in the world. This is backed by joint-ventures with local partners Dongfeng and Chang An, both in terms of production and also in R&D; over the next three years, both partners will feature dedicated JV R&D centres developing technologies to be included in Chinese-built cars.
These innovations will join a considerable portfolio of technologies developed in Europe, such as the EMP modular platform system, the HYbrid4 petrol/electric hybrid system, now available on a growing range of Peugeot and Citroën vehicles, and the Hybrid Air technology, which uses compressed air to power vehicles in city driving. These advanced build and powertrain solutions will serve as the basis of a series of new vehicles, the development of which will be supported by the EUR3 billion of liquidity generated by direct company investment and new share offerings.
How this dichotomy plays out over the remainder of the decade and into the 2020s will be critical to the future of PSA. Should these strategies deliver success, then the OEM is virtually guaranteed a continued place at the top table of global car manufacturers. On the other hand, failure to achieve the goals outlined in these proposals could see PSA relegated to the second or third rung of car production, becoming a regional, rather than global, enterprise.

How the current and future plans for PSA could play out are reviewed in Supplying PSA Peugeot Citroën 2014. The report takes the recent proposals for the future of PSA and applies them to key areas of the company, including current and future models, platform development and production footprint, analysing how they will change and the impact these changes will company’s global supply base. In addition, Supplying PSA further examines how the carmaker manages its suppliers and the role of the supply base across PSA production – on average, parts delivered from suppliers make up 80% of each vehicle manufactured by PSA.
Supplying PSA offers unparalleled analysis of the strategies and tactics PSA Peugeot Citroën is planning to implement over the coming years, with analysis of how these could affect the evolution of the company. It is certain that these changes will have a dramatic impact on the company as it expands its production footprint and as such, Supplying PSA is of vital importance to those suppliers now working with company and those planning to do business with PSA at a future date.

Table Of Contents

Supplying PSA Peugeot Citroën
Global market overview
Financial data
PSA Peugeot Citroën financial overview
Product and platform strategy
Strategy review
Major model programmes
Peugeot 208
Peugeot 308
Citroën C4
Citroën C3
Peugeot 3008
Peugeot 207
Peugeot 508
Citroën C4 Picasso
Peugeot Partner/Citroën Berlingo
Platform strategy
Major platforms
1. PF2 (including Citroën C4, DS4, Berlingo, C4 Picasso and Peugeot 308, 3008 and RCZ)
2. PF1 (including Citroën C2, C3, DS3 and Peugeot 207, 208, 1007)
3. D/X/Z (including Citroën Xantia, XM, Peugeot 405, 406, 607)
4. PF3 (including Citroën C5, C6 and Peugeot 407 and 508)
5. EMP2 (including Citroën C4 Picasso, Peugeot 308)
6. B-0 (including Citroën C1, Peugeot 107, 108)
7. T1 (including Peugeot 206, 207, Hoggar)
Component sharing
Volume planning
Production strategy
Production strategy overview
Manufacturing network
Czech Republic
Internal supply network
Modularisation strategy
Supplier parks
Cluster of reference
Strategies for manufacturing efficiency
Purchasing strategy
Purchasing strategy overview
Levels of vertical integration and outsourcing
Purchasing organisation
Purchasing offices
Key purchasing personnel
Purchasing budget
Supplier selection
Supply base development
Major and strategic suppliers
Supplier selection criteria
Working with PSA Peugeot Citroën
Global sourcing
Policy and plans
Pricing policy
Cost reduction strategies
Payment process and terms
Raw material price management
Quality level
Quality management systems
Integration into product development
Management of suppliers and sub-suppliers
Supplier awards
Technological positioning
Areas of focus
RandD spending
RandD organisation
Access to supplier technology
Approach to alternative fuels, electrification and fuel cells
Special vehicle development
David Tung, director of Purchasing for the CAPSA joint-venture
OEM-Supplier survey results
Introduction to the SuRe Index
Executive summary
Profit potential
OEM level
OEM level
OEM level
Pursuit of excellence
OEM level
OEM level
SWOT analysis
Global footprint
Forward model programme
Major suppliers to PSA
C4 Picasso 2013 (Europe)
DS5 2011 (Europe)
Peugeot 2008 (2013, Europe)
Peugeot 208 (2012, Europe)
Peugeot 308 (2013, Europe)

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