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Growth Strategy
Corporate
Governance
Business Review
Corporate Policies
Management’s
Discussion
and Analysis
Statistics
In 2002, Banque PSA Finance completed several major steps in the implementation of its
strategy. It continued to expand in Central Europe, where it is supporting Peugeot and
Citroën’s fast growth with an offer of financing solutions and related services similar to those
marketed in Western Europe. The Polish subsidiary created in 2001 enjoyed a satisfactory
first full year of operations, financing 24.2% of the two marques’ local sales. Late in the
year, the Bank opened subsidiaries in the Czech Republic and Slovakia, while preparing to enter
Hungary in 2003.
In early 2002, Banque PSA Finance took over direct control of its activities in the United
Kingdom, which were previously conducted with a local partner. This was an important
development, because the UK market is the Bank’s second largest after France, and because
with the changeover, all of its operations in Europe are managed by wholly-owned branches
or subsidiaries. The Bank can now mesh more seamlessly with Peugeot and Citroën’s
marketing strategies and tighten its organization, with information systems and certain back
office processes integrated across Europe. In this way, it intends to drive fast, consistent
growth in all product lines in each national market, while improving productivity through
economies of scale. Management systems are already being extensively revamped, in a
process that will be completed in Western Europe in 2005.
BUSINESS REVIEW
Banque PSA Finance provided new retail
financing for 803,500 Peugeot and
Citroën vehicles in 2002, almost unchanged
from the 801,100 financed in 2001.
It demonstrated strong resistance to
aggressive competition in certain
countries, thanks to a portfolio of
customer-driven products, which now
comprise a high percentage of
comprehensive service packages combining
car insurance, service warranties, extended
warranties and vehicle and fleet
management services.
New vehicle loans rose by 0.5% to
622,800 units. The increase, which slightly
outpaced growth in Group registrations
in Europe, enabled the Bank to maintain
its penetration rate—i.e. the number of
vehicles financed by the Bank as a
percentage of total Peugeot and Citroën
vehicle registrations in the Bank’s country
markets—at 25.3%. This performance
was led by the deployment of financing
PSA PEUGEOT CITROËN - MANAGING BOARD REPORT 39 45