Peugeot Citroën During the Global Crisis

Résumé du document

In addition to the rocketed oil prices and triggered by the sub-prime mortgage in the US, almost every industry has been hit. Costs are rising for companies especially for the automotive industry which use a lot of energy and fuel. The industry was focused on rising oil prices, emissions control and the price of steel.

Inflations and prices of cars were rising, and revenues were falling. This coupled with people worried about their finances, has lead to virtually no-one buying cars. Companies have seen their annual sales collapsing and had to take some initiative to compensate for the crisis.

Today, the situation of the automotive industry is unprecedented. As global stock markets plunge and consumers confidence dips to historic lows, light vehicle sales in almost all regions continue to slide. For the mature markets, especially in Western Europe and of course in the U.S, the decline in sales has been very sharp. Major factors for this decline include a lack of cash and financing sources, placing severe pressure on suppliers and dealers.

This situation, in turn, increases the risk to Original Equipment Manufacturers (OEMs), like the German Bosch or the French Valeo, that suppliers may fail and production may have to stop. With credit increasingly more expensive and difficult to get, these financial tensions will likely continue to affect the entire industry, from consumers of the end product to dealers, OEMs and suppliers.

Extraits

[...] Peugeot Citroën During the Global Crisis Introduction In addition to the rocketed oil prices and triggered by the sub-prime mortgage in the US, almost every industry has been hit. Costs are rising for companies especially for the automotive industry which use a lot of energy and fuel. The industry was focused on rising oil prices, emissions control and the price of steel. Inflations and prices of cars were rising, and revenues were falling. This coupled with people worried about their finances, has lead to virtually no-one buying cars. [...]

[...] PSA talks about two hybrid cars in 2011: The Peugeot 3008 hybrid4 and the Citroën DS5 hybrid4. These are specific car which is embedded by electric battery and petrol engine. This type of technology can offer an alternative combination between the full electric and the petrol engine. New vehicle and drive concepts are crucial elements for PSA. They are also key ingredients for long-term survival in the competition with other transport modes and concepts. Drive electrification will play a decisive role during automotive crisis because it will either support a combustion engine electrically hybrid”), partially replace it during vehicle operation hybrid”, “plug-in hybrid”) or replace it completely (battery electric vehicle, fuel-cell vehicle). [...]

[...] I think new technology vehicles like electric battery cars is a good thing for the all industry. It will develop employment for a large population. Not just for the car industry because there are a lot of things to take into account: The battery manufacturing, rental, change, charging, maintenance, recycling. This leads me to speak about the Renault strategy. Renault works on a new system of battery electric cars: you have the choice to charge your vehicle by plug-in it or if you don't have enough time, you can change the battery in few minutes. [...]

[...] But PSA isn't the only car manufacturer to come on this specific market. Over the next 15 years, battery electric vehicles will barely reach a market share of three percent in the worldwide automotive sector. Substantial extra costs, which presently reach as much as Euro 20,000 for a car in the same category as the Volkswagen Golf, and limited driving ranges stand in the way of broad distribution of these vehicles. Because you have to know battery electric cars will just have between 120-150km autonomy. [...]

[...] Cars manufacturer are inevitably affected and must adapt their global strategy. U.S car manufacturer were the most affected because of their polluters” past. They are historically champion of big car, big engine. Nowadays, they have to revise their concept and propose more “green-cars”. The trend is now to produce smaller and cleaner car at a reasonable price. Politics and government will have a part in this problem because they will have to invest in the right cars industry future. In 2010, we are in the new beginning of hybrid and electric cars, even Toyota and his Prius start his sales 13 years ago. [...]