PSA Concern is going through difficult times this year. The European Union approved France’s request to give the PSA Peugeot Citroen Concern a loan of $ 1.6 billion for a 36 month period with French government being a guarantor for the loan. This agreement may seem like a really good one until you know all the details. Within this agreement’s limits the PSA Concern has to provide the restructuring plan that proves the Company’s ability to survive without the additional help from France or European Union for that matter. Making this plan is not the easiest thing to do. The 2012 revenue of the PSA Company has lowered by 10.3% and the Concern itself lost $ 5 billion as a result.
French auto manufacturers are trying to find any solution to get out of this difficult financial situation but not every step the Company’s managers take is understandable. For example it has become known recently that the French manufacturers decided to reposition their leading brands. If until now the Peugeot vehicles were considered more or less affordable compared to the Citroen ones this situation is about to change.
From now on the premium class orientation will be the Peugeot’s main priority. Every car that has a lion symbol on the grille will move to a higher class leaving the Citroen vehicles behind. We’re not talking about the DS series that will remain the best selling series as usual and will not participate in the new concept. The difference between the French cars will show in their technical characteristics. All the latest developments of the PSA Concern will go to Peugeot doors meanwhile Citroen engineers will have to be happy with the basic equipment and engine options.
The electrical Peugeot 208 GTi hatchback is a great example of the Concern’s new policies. It represents the new direction of the brand and has every innovative feature that PSA engineers were working at for the past years. There are no guarantees that this decision was the right one to make, but it was the only option PSA Concern has at this time.