PSA COUV page . page RA GB - PEUGEOT Presse
PSA COUV page . page RA GB - PEUGEOT Presse
PSA COUV page . page RA GB - PEUGEOT Presse
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Growth Strategy<br />
Corporate<br />
Governance<br />
Business Review<br />
Corporate Policies<br />
Management’s<br />
Discussion<br />
and Analysis<br />
Statistics<br />
EXPANDING THE SERVICES PORTFOLIO<br />
Sales of financing-related services rose sharply in 2002, in particular those responding<br />
to growing customer demand for services that support vehicle use, like service warranties<br />
and driver assistance. Customers increasingly want to fold into a single budget the total<br />
cost of owning a car.<br />
Growth in number of services sold<br />
Financing-related services Automobile-related services Total<br />
2001 2002 2001 2002 2001 2002<br />
522,704 363,802 886,506<br />
+4.9 % +94.6 % +29.4 %<br />
498,304 186,933 685,237<br />
Operating margin for the finance business<br />
rose sharply to €319 million from<br />
€248 million in 2001. It was adversely<br />
affected in 2001 by the lower margins on<br />
new contracts signed in 2000 and early<br />
2001 after heightened competition in the<br />
European consumer lending market<br />
prevented higher refinancing rates from<br />
being fully passed along to customers. In<br />
2002, however, lending margins rebounded,<br />
while outstandings continued to grow. At<br />
the same time, allowances for credit losses,<br />
which were low by industry standards,<br />
were further improved and general<br />
operating expenses continued to rise more<br />
slowly than outstandings, reflecting the<br />
initial impact of organizational integration<br />
at the European level.<br />
<strong>PSA</strong> <strong>PEUGEOT</strong> CITROËN - MANAGING BOARD REPORT 47
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