Fleet News

PSA cuts number of platforms to remain independent

PSA Peugeot Citroen is launching a massive restructuring of its manufacturing strategy to slash the number of platforms across its range from seven to three in five years. The French car maker will implement the strategy to achieve manufacturing cost savings as it strives to increase market share without falling prey to rival car makers.

At a briefing to discuss Peugeot's new executive car, director general Frederic Saint-Geours said the three-platform strategy was essential to achieve the savings necessary for Peugeot to compete with larger players. He added that, within three years, PSA sales are targetted to hit three million units a year - a significant increase on its current sales of about 2.3 million vehicles, with Peugeot taking 1.3 million and Citroen 965,000.

'We are expected to sell three-quarters of these on the three platforms - nearly one million vehicles per platform - and, if you compare that to some other manufacturers with lots of different platforms, there is a lot of room for savings,' said Saint-Geours. 'Meanwhile, we will continue strategic arrangements with other manufacturers to develop engines and gearboxes, so costs are shared.

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