PSA COUV page . page RA GB - PEUGEOT Presse

Growth Strategy
Corporate
Governance
Business Review
Corporate Policies
Management’s
Discussion
and Analysis
Statistics
1.4-LITER HDI CAPACITY DOUBLED AT TREMERY PLANT
In response to robust demand, a new 1.4-liter HDI diesel engine production line was brought on
stream in November 2002 at the Trémery plant in eastern France. Developed as part of the cooperative
venture with the Ford Motor Company. and introduced in April 2001, the engine uses the latest
generation common rail injection system. It already equips the Peugeot 206, the Peugeot 307, the
Citroën C3 and a number of Ford vehicles.
Programs to renovate and update the
manufacturing base were also pursued
during the year, with the completion of
the new primer line at the Poissy paint
shop, the first phase of the modernization
of the Poissy passenger car assembly line,
the new stamping facilities at the Poissy
and Rennes plants, and the final phase in
the modernization of the Sochaux
assembly facility. Lastly, at the Trémery
plant, work was completed on the first
manufacturing module for the small diesel
engines to be produced by the cooperative
venture with the Ford Motor Company.
Over the medium term, the platform
strategy will help to stabilize Automobile
Division capital expenditure and to
maintain consolidated capital outlays at
around €3 billion, most of which will be
earmarked for investment in new models,
strategic technical systems, such as
powertrains and transmissions, and
international expansion.
AN ASSERTIVE COOPERATION STRATEGY
During the year, PSA Peugeot Citroën
pursued its strategy of forming cooperative
ventures with other manufacturers. These
ventures speed the development of a
broader range of new models and improve
responsiveness to customer expectations.
They are also a way to share, and thereby
reduce, capital outlays and development
costs, while leveraging the economies of
scale generated by the partner’s production
volumes. Lastly, cooperative ventures with
world-renowned manufacturers offer an
opportunity to enhance the Group’s image
and to draw upon valuable, broad-based
experience, in terms of both corporate
culture and technological and manufacturing
capabilities.
In February 2002, the cooperation in light
commercial vehicles with Fiat was extended
until 2017. The latest phase will entail the
investment of around €1.7 billion to develop
and manufacture two new lineups for
introduction after 2005. They will be built
at the plants in Val di Sangro, Italy
(Sevelsud) and Valenciennes, France
(Sevelnord).
The venture has strengthened both
partners’ positions in the light commercial
vehicle market, with more than 3.5 million
units being produced by the two plants
since start-up in 1978. In addition, their
technical and industrial cooperation in the
area of executive MPVs was recently
confirmed with the launch of the Peugeot
807, the Citroën C8 and similar Fiat models.
After introducing the new 1.4-liter and
1.4-liter Turbo HDI diesel powertrains in
the autumn of 2001, in February 2003,
PSA Peugeot Citroën and the Ford Motor
Company unveiled two new 1.6-liter and
2-liter common rail direct injection diesels
developed in the second phase of their
cooperative venture. Scheduled to
gradually equip both partners’ model lines
in the second half of the year, the engines
represent another step towards improving
fuel economy, environmental impact and
technical performance. Bringing them to
market required an aggregate investment
of nearly €1 billion. Production capacity
will ultimately exceed 1,600,000 engines
a year, providing most of the diesel
powerplants for the core model lines of
each partner. In addition, the two
companies are pursuing the joint
development of other families of direct
PSA PEUGEOT CITROËN - MANAGING BOARD REPORT 41