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Peugeot’s Recovery Plans
Peugeot has decided to scrap off almost 50 percent of its models. This decision has been adopted in order to pace up the recovery post a rescue deal that was supported by the government of France and the Dongfeng Motor group of China.
The company has decided to bring down the model line-up to 26 from 45 in the coming four years and will step up the development of the DS range to make it a premium brand.
The focus of the new line-up will be on developing the plug-in hybrid vehicles, self driving cars, and 4-wheel power-train. During the period of two years the company incurred a loss of about six billion pounds and the reason for this was the drop in sales in a European market that posed a tough competition. During these tough times the government of France and the Dongfeng Motor group of China came to its rescue.
As a recovery plan, the company plans to triple its exports to China and also entering into the Asian market. The company also plans to transform its business in Latin America and also in Russia with the aim to achieve profits in the coming three years.