PSA Group
| File:Peugeot logo 2021.svg Peugeot logo | |
| Company type | Société anonyme |
|---|---|
| Industry | Automotive |
| Predecessor | PSA Peugeot Citroën (1991–2016) |
| Founded | 1810 (as Peugeot family business; PSA Group from 1976) |
| Fate | Merged with Fiat Chrysler Automobiles to form Stellantis in 2021 |
| Successor | Stellantis |
| Headquarters | Rueil-Malmaison , France |
Area served | Worldwide |
Key people | Carlos Tavares (CEO) |
| Products | Automobiles, motorcycles, engines, financial services |
| Revenue | €74.7 billion (2019) |
| €4.7 billion (2019) | |
| €3.2 billion (2019) | |
| Total assets | €69.8 billion (2019) |
| Total equity | €21.8 billion (2019) |
Number of employees | 209,000 (2019) |
| Website | www |
Peugeot S.A., operating under the name Groupe PSA (known as PSA Peugeot Citroën between 1991 and 2016), was a French multinational corporation engaged in manufacturing cars and motorcycles under the Peugeot, Citroën, DS, Opel, and Vauxhall marques. On 18 December 2019, PSA reached an agreement to merge with Fiat Chrysler Automobiles (FCA) in a deal valued at £38 billion, which was completed on 16 January 2021, creating Stellantis, currently ranked as the fourth largest global automaker by sales volume.
Peugeot represented the largest brand within PSA’s portfolio. The company was publicly traded on the Euronext Paris exchange and was a constituent of the CAC 40 index. Beginning in 2016, PSA embarked on an aggressive growth strategy focused on expanding its geographic footprint and acquiring new assets, targeting markets such as India, the United States, Canada, and Southeast Asia.
Based in Rueil-Malmaison, PSA recorded sales of 3.88 million vehicles in 2018, making it the third biggest automobile manufacturer headquartered in Europe after Volkswagen and closely following Renault. In 2019, Groupe PSA held the ninth position worldwide among car manufacturers.
For the year 2019, PSA reported revenues of €74.7 billion, operating profits of €4.7 billion, total assets amounting to €69.8 billion, shareholders’ equity of €21.8 billion, and net earnings of €3.2 billion. The workforce numbered around 209,000 employees globally.
PSA’s operations encompassed several automotive production subsidiaries such as PSA Automobiles (including Sevel Nord and Sevel Sud), Opel Automobile GmbH (alongside Vauxhall Motors Limited), major parts supplier Faurecia (in which it held a controlling interest), and financial services through Banque PSA Finance. Its international presence extended across Argentina, Brazil, Mexico, China (via Dongfeng Peugeot-Citroën), Iran (through Iran Khodro Automobiles Peugeot), and Russia (Peugeot Citroën Mitsubishi Automotive Rus).
Acquisition of Citroën
In December 1974, Peugeot S.A. acquired a 38.2% ownership stake in Citroën, which was increased to 89.95% by April 1976, leading to the creation of the PSA Group (Peugeot Société Anonyme) and rebranding as PSA Peugeot Citroën. The collaboration combined Citroën's successful GS and CX models with Peugeot’s solid financial foundation, resulting in profitability between 1976 and 1979.
Acquisition of Chrysler Europe
Towards the end of 1978, PSA took over the struggling Chrysler Europe division (previously Rootes and Simca) for a nominal sum of £0.76 plus debt liabilities, which led to financial losses from 1980 through 1985. The merged French and British product lines were marketed under the Talbot brand until passenger car production ceased in 1987 and commercial vehicle manufacturing ended in 1992.
Although this acquisition placed significant financial pressure on PSA, robust sales of the Peugeot 205 enabled the company to surpass Renault in France by 1983. The Talbot name was retired from passenger vehicles following the discontinuation of the Simca Horizon in 1987; its intended replacement, the Talbot Arizona, was launched instead as the Peugeot 309. From October 1985 onwards, assembly at Ryton and Poissy plants transitioned to Peugeot models, marking PSA's initial car production operations within the United Kingdom (the Ryton facility closed in 2006). The Ryton plant also manufactured the Peugeot 405 saloon between 1987 and 1995.
Financial difficulties and partnership with General Motors (2012–2014)
On 29 February 2012, PSA declared a significant partnership with General Motors (GM), which resulted in GM becoming PSA's second-largest shareholder, holding a 7% stake behind the Peugeot family. This collaboration was designed to generate annual savings of £1.5 billion by sharing platforms, combining purchasing efforts, and leveraging economies of scale.
By July 2012, PSA Peugeot Citroën announced plans to reduce its French workforce by up to 10%, equating to between 8,000 and 10,000 positions, surpassing previous reduction estimates.
In October 2012, PSA reached an agreement with creditor banks securing €11.5 billion (£11.3 billion) in refinancing and obtained state-backed guarantees for an additional €7 billion of borrowing through Banque PSA Finance.
On 12 December 2013, GM divested its entire 7% shareholding in PSA, selling it to Padmapriya Automobile Investment Group.
During 2014, as part of a financial restructuring effort, both Chinese partner Dongfeng Motor Group and the French government acquired 13% stakes each in PSA, which reduced the Peugeot family’s ownership from 25% down to 14%.
Accelerated growth
Following the entry of Dongfeng and the French government as shareholders, PSA implemented cost-saving strategies that steadily lowered its debt burden and restored profitability starting in 2015. CEO Carlos Tavares pursued additional expense reductions, broadened the lineup of its three key brands, and introduced the new DS Automobiles marque.
At the beginning of 2016, PSA announced intentions to return to the North American market for the first time since its exit in 1991.
Acquisition of Ambassador brand from Hindustan Motors
On 10 February 2017, PSA established a 50:50 joint venture with the CK Birla Group aimed at marketing Peugeot, Citroën, and DS vehicles within India. Concurrently, it purchased the iconic Ambassador brand from Hindustan Motors for ₹80 Crore (€11 million).
Purchase of Opel and Vauxhall Motors
On 14 February 2017, PSA entered advanced negotiations to acquire Opel and Vauxhall from General Motors (GM), a move that surprised industry analysts given Opel’s strategic shift toward becoming an electric-only brand. GM agreed to provide PSA with electric vehicle technology, including access to the Ampera-e platform. The acquisition was finalized in August 2017.
GM had posted a £195.1 million loss in Europe during 2016, marking its sixteenth consecutive unprofitable year on the continent with total losses exceeding £11.4 billion since 2000. Although concerns were raised regarding PSA’s financial risks from this deal, GM’s substantial losses likely enabled favorable terms for PSA. CEO Tavares anticipated significant operational synergies within ten years following the acquisition.
During visits to Opel and Vauxhall facilities, Tavares met with German Chancellor Angela Merkel and British Prime Minister Theresa May, reassuring them about job preservation and confirming that production at Vauxhall’s Ellesmere Port plant would continue until at least 2021.
He stressed the importance of maintaining Opel’s German brand identity and engineering legacy to appeal to customers wary of French marques due to reliability concerns. Furthermore, he revealed plans to elevate Opel and Vauxhall on a global scale by expanding their sales beyond Europe for the first time in decades.
Attempt to Acquire Proton
On 17 February 2017, PSA declared its intention to purchase PROTON Holdings, the company behind the Proton and Lotus marques. However, the bid was ultimately unsuccessful, with Geely securing the acquisition a few months afterward.
FCA Merger
In May 2019, Fiat Chrysler Automobiles (FCA) initiated merger discussions with Groupe Renault, but these negotiations were halted in June and did not recommence. Subsequently, on 31 October 2019, Groupe PSA revealed plans to merge with FCA through a 50-50 all-stock transaction. By 18 December 2019, both parties had finalized a binding agreement valued at £38 billion, anticipating completion within a year. The newly formed corporation, established in the Netherlands, appointed John Elkann as Chairman and Carlos Tavares as Chief Executive Officer. The combined group was officially named Stellantis on 15 July 2020, a name inspired by the Latin verb "stello," meaning "to illuminate with stars." Shareholder approval was secured on 4 January 2021, and the merger was finalized on 16 January 2021.
Business Activities
While the Peugeot, Citroën, and DS Automobiles brands operate distinct sales and marketing teams, they share common platforms for technology development and manufacturing processes.
Jean-Martin Folz led PSA as CEO from 1996 until early 2007, followed by former Airbus executive Christian Streiff. After reporting losses for the full year of 2008, Streiff was dismissed on 29 March 2009 and succeeded by Philippe Varin, previously CEO of Corus Group. In 2014, leadership transitioned to Carlos Tavares as CEO.
Expansion in Emerging Markets
PSA pursued growth in rapidly developing economies through substantial investments and collaborations in regions such as South America, Iran (partnering with Iran Khodro), and China via Dongfeng Peugeot-Citroën Automobile. The company allocated €650 million to establish a manufacturing facility in Sanand, India, capable of producing 170,000 vehicles annually; operations commenced in 2020. In Kazakhstan, Peugeot began assembling passenger cars in June 2013 with an initial annual capacity of 4,000 units, targeting an increase beyond 10,000 units. Additional production sites were launched in Tunisia (2018) and Kenitra, Morocco (2019).
Citroën aimed to enter the Indian market in early 2021 by introducing the C5 Aircross SUV, assembled locally at a plant in Tiruvallur, India.
Peugeot Citroën Automobiles S.A.
This entity manufactures vehicles under the Peugeot, Citroën, and DS Automobiles brands and is wholly owned by PSA Group following the merger between Automobiles Citroën and Automobiles Peugeot. Although these marques maintain separate retail operations globally, their vehicle design and production are consolidated within PSA.
PSA PowerTrain (previously Peugeot Citroën Moteurs)
PSA PowerTrain specializes in producing petrol and diesel engines supplied to clients including BMW, Ford, Jaguar, and Land Rover. Originating in 1898 as Compagnie Lilloise de Moteurs (CLM) founded by Peugeot in Lille, it was rebranded as Peugeot Citroën Moteurs in 1992.
Since 1998, PSA has collaborated with Ford on engine manufacturing. Additionally, PSA partnered with BMW to develop the 1.6-litre Prince engine series, which earned the International Engine of the Year accolade eight times between 2007 and 2014. The company also supplies engines, transmissions, and components to specialized manufacturers such as De La Chapelle and PGO.
Process Conception Ingénierie
Process Conception Ingénierie (PCI) is a French company specializing in manufacturing machine tools, primarily catering to the automotive and aerospace industries.
Faurecia
PSA holds a 57.43% ownership interest in Faurecia, an automotive supplier established in 1997 through the merger of Bertrand Faure and PSA’s ECIA subsidiary. Faurecia provides components to brands such as Peugeot, Citroën, and DS, along with interior and exterior parts for luxury marques including Audi, BMW, and Mercedes-Benz.
Gefco
Gefco, an international logistics leader, was originally created by Peugeot in 1949 under the name Les Groupages Express de Franche-Comté. In November 2012, PSA divested a 75% share to Russian Railways (RZD) for €800 million but continued to utilize Gefco as its main logistics provider. Rail transport accounts for approximately 15% of global finished vehicle shipments, with sea freight comprising 21%, and about 700,000 vehicles are moved annually by train across Europe.
Motaquip
Founded by PSA Peugeot Citroën in the UK in 1981, Motaquip is a supplier of aftermarket parts for all vehicle makes. It became an independent entity named "Motaquip Limited" in December 2014, operating from its headquarters in Nuneaton with distribution managed from Luton.
Financial services
Banque PSA Finance is wholly owned by PSA and offers a range of financial services. Additionally, PSA controls 98.67% of GIE PSA Tresorerie, an entity established in 1990 to oversee treasury and cash management functions.
Former marques and subsidiaries
Through its 1978 acquisition of Chrysler Europe, PSA inherited multiple marques, some of which were consolidated to revive the Talbot brand. These included British marques such as Sunbeam, Humber, Singer, Commer, Hillman, and Karrier, along with French brand Simca and Spanish manufacturer Barreiros.
Cycles Peugeot produced bicycles from 1882 until ceasing operations in 2005. In 1987, Canadian company ProCycle acquired North American distribution rights and later marketing rights until discontinuing them in 2001. The European licensing was transferred to Cycleurope but later rescinded; however, exports persisted for a brief period afterward.
Peugeot Motocycles manufactures scooters and mopeds. Mahindra & Mahindra acquired a controlling 51% stake in 2014 and took full ownership by 2019. The company also held a 50% interest in the Jinan Qingqi joint venture in China until China South Industries Group assumed full control in 2013.
Citer SA, a French car rental firm founded by Citroën in 1968, was sold to Enterprise Holdings in 2011.
Sevel S.p.A.
Sevel (Société Européenne de Véhicules Légers SA / Società Europea Veicoli Leggeri-Sevel S.p.A.) was established in 1978 as an equal partnership between PSA Group and Fiat. The venture runs two manufacturing plants—Sevel Nord and Sevel Sud—that produce the Fiat Ducato alongside Peugeot Boxer and Citroën Jumper models. Additionally, Peugeot’s and Fiat’s Argentine operations were combined under Sevel Argentina S.A., although Fiat exited this joint venture in 1995.
Dongfeng Peugeot-Citroën Automobile
Founded in 1992 in partnership with Dongfeng Motor Corporation (which later became Dongfeng Motor Group), this joint venture produces vehicles such as the Citroën C-Triomphe, 207, 307, and 408 at facilities located in Wuhan and Xiangyang, China.
Peugeot Citroën Mitsubishi Automotive Rus
Established in 2011 as a collaboration with Mitsubishi Motors, where PSA holds a 70% stake, the Kaluga manufacturing plant assembles models including the Mitsubishi Outlander, Pajero Sport, Peugeot 308, and Citroën C4. Since 2018, production expanded to include the Peugeot Expert and Citroën Jumpy.
IKAP (Iran Khodro Automobiles Peugeot)
Launched in 2016 as an equal joint venture with Iran Khodro based in Tehran, IKAP produces select Peugeot models locally while importing others as fully built units for distribution within Iran.
B-Parts
In 2020, PSA Aftermarket entered the circular economy sector by acquiring B-Parts, a platform specializing in the sale of used automotive components. This move aligns with PSA’s “3R” approach—repair, reuse, remanufacture—and aims to triple revenue from circular economy activities between 2018 and 2023, reinforcing its commitment to sustainability.
Other interests
PSA considered acquiring Mitsubishi Motors in 2008; however, negotiations ended without completion in 2010. Despite this, the arrangement led to the marketing of the Mitsubishi Outlander and Mitsubishi i-MiEV under Peugeot and Citroën badges within Europe.
Former joint ventures
- Toyota Peugeot Citroën Automobile Czech (TPCA), created in 2002 as a joint enterprise between PSA and Toyota, manufactured the Citroën C1, Peugeot 108, and Toyota Aygo models in the Czech Republic until PSA divested its share to Toyota on January 1, 2021.
- Guangzhou Peugeot Automobile Company (GPAC) operated from 1985 until 1997, producing the Peugeot 504 and Peugeot 505.
- In 2011, PSA and BMW established BMW Peugeot Citroën Electrification, a joint venture focused on hybrid technology development. This partnership was terminated at the end of 2012 following PSA’s alliance with General Motors.
- Changan PSA, a Shenzhen-based equal partnership with Chang'an Automobile Group, initially had an annual production capacity of 200,000 vehicles and engines. The venture manufactured vehicles under the DS Automobiles brand until it was dissolved in 2020 after both parties sold their shares to Baoneng Group.
Head office
The PSA Group’s corporate headquarters are situated in Rueil-Malmaison within a building occupied since 2017 that accommodates approximately 700 staff members.
United Kingdom
Peugeot Motor Company PLC operates as a wholly owned subsidiary of PSA Peugeot Citroën in the UK, overseeing the Peugeot UK, Citroën UK, and DS Automobiles brands. Its retail division, Stellantis &You (known as Robins & Day until 2023), originated as part of Rootes Group before becoming part of PSA in 1970.
Other locations
PSA manages numerous manufacturing and R&D sites worldwide. Its largest production facility is located in Vigo, Galicia, Spain. The Mangualde Plant in Portugal celebrated producing its one-millionth vehicle in 2012.
The group invested ₹4 billion to establish a manufacturing site in Chennai, India. In November 2016, PSA announced plans for a new factory in Tunisia with an annual output capacity of 1,200 units scheduled to commence operations by mid-2018.
In January 2018, after thorough assessment, PSA chose Atlanta as its North American headquarters. However, following the merger with Fiat Chrysler Automobiles forming Stellantis in 2021, plans to reintroduce Peugeot vehicles to North America were shelved to concentrate on FCA’s existing brands: Chrysler, Dodge, Jeep, and Ram.
Hybrid Air
At the 2013 Geneva Motor Show, PSA Group introduced the "Hybrid Air" powertrain, an innovative petro-hydraulic hybrid concept. This system, developed by a dedicated team of approximately 100 engineers, was originally implemented in heavy-duty vehicles such as buses and subsequently modified for use in passenger automobiles. The technology harnesses energy captured during braking to compress nitrogen gas, which then drives a hydraulic mechanism that assists the petrol engine. Critical components for this system were provided by Robert Bosch GmbH. Production was anticipated to begin between 2015 and 2016, with a target retail price near €22,560 (£18,983). When integrated into a Citroën C3, the Hybrid Air system was expected to achieve fuel consumption around 3.5 L/100 km (80 mpg) in urban conditions.
Accolades
Peugeot and Citroën have received numerous prestigious awards over the years, including ten European Car of the Year distinctions, twelve Auto Europa honors in Italy, eighteen Spanish "Car of the Year" awards, and five accolades from Irish Car of the Year.
European Car of the Year recipients:
- 1969 – Peugeot 504
- 1971 – Citroën GS
- 1975 – Citroën CX
- 1988 – Peugeot 405
- 1990 – Citroën XM
- 2002 – Peugeot 307
- 2014 – Peugeot 308 II
- 2017 – Peugeot 3008 II
- 2020 – Peugeot 208 II
See also
External links
- (archived, 4 Nov 2021)