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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 />

WHAT ARE BIOFUELS?<br />

Derived from cereals, sugar beets (ethanol and its ETBE derivative), or oilseeds such as rapeseed or<br />

soybeans (in the case of biodiesels), biofuels are exceptionally well suited to combating the<br />

greenhouse effect. They reduce emissions of pollutants such as particulates and, by their very nature,<br />

prevent an increase in carbon dioxide content in the atmosphere, since the plants from which they<br />

are made trap atmospheric CO 2 through photosynthesis. Biofuels are therefore fully renewable<br />

energies, although their production cost remains high.<br />

SERVICE FLEETS:<br />

<strong>PSA</strong> <strong>PEUGEOT</strong> CITROËN<br />

LEADS THE WAY<br />

The European Commission has<br />

specified that by 2020, 20% of<br />

automotive fuels must contain<br />

products of plant origin.<br />

<strong>PSA</strong> Peugeot Citroën is already<br />

setting an example in meeting this<br />

goal by encouraging its service fleet<br />

to run on biofuels. For example, 82%<br />

of the diesel fleet at the Sochaux<br />

plant—or close to 58% of the entire<br />

service fleet—ran on biofuel in 2002.<br />

Consisting of 30% vegetable oil<br />

methyl ester and 70% diesel, the<br />

fuel is already richer in plant matter<br />

than required by EU legislation.<br />

The Sochaux plant used 330,000<br />

liters of Diester ® in 2002. It intends<br />

to maintain this level in 2003, since<br />

the fuel has a favorable net impact<br />

on the environment and is suitable<br />

for use in conventional internal<br />

combustion engines, which still<br />

power most of the fleet.<br />

aftertreatment system that eliminates<br />

emissions of particulate matter, is now<br />

available on the Peugeot 307, 406, 607<br />

and 807 and the Citroën C5 and C8.<br />

The particle filter has been a popular<br />

success since it was introduced in May<br />

2000, and is already installed on 400,000<br />

diesel vehicles. By 2005, one million<br />

particle filter-equipped vehicles will be<br />

marketed a year. Already in 2003,<br />

<strong>PSA</strong> Peugeot Citroën is offering filterequipped<br />

vehicles compliant with the<br />

stricter Euro IV emissions standards<br />

scheduled for application in 2005.<br />

The particle filter has also won a number<br />

of awards, including four in 2001. In<br />

2002, Italy’s Quattroruote automotive<br />

magazine presented its Environment Prize<br />

to the filter-equipped Peugeot 607.<br />

PROMOTING BIOFUELS<br />

Another way to attenuate vehicle CO 2<br />

emissions is through the efficient use of<br />

alternative energies and new propulsion<br />

technologies. A pioneer in the field,<br />

<strong>PSA</strong> Peugeot Citroën is strongly committed<br />

to promoting biofuels that can be used in<br />

diesel or gasoline engines. Biodiesels, such<br />

BIODIESEL PERFORMANCE<br />

as the Group’s trademarked Diester ® , consist<br />

of vegetable oil methyl esters (VOMEs)<br />

blended with automotive diesel fuel, while<br />

ethanol or its derivative ethyl tertiary butyl<br />

ether (ETBE) is used with gasoline.<br />

These biofuels can be used directly in any<br />

Peugeot or Citroën vehicle, without any<br />

technical modifications. In this way, the<br />

Group’s service fleet is encouraged to run<br />

on Diester ® 30, a fuel combining 30%<br />

VOME and 70% automotive diesel that<br />

reduces CO 2 emissions by 18% and particle<br />

emissions by up to 22% in comparison<br />

with ordinary diesel fuel. What’s more,<br />

Diester ® 30 lubricates the engine system<br />

more efficiently, enhances protection from<br />

injection system wear, and ensures smoother<br />

operation of catalytic converters.<br />

<strong>PSA</strong> Peugeot Citroën also supports the<br />

development of biofuels by validating<br />

potential applications under local energy<br />

policies. It regularly shares its experience as<br />

a carmaker by taking part in discussions on<br />

the technical, business and political issues<br />

raised by biofuels.<br />

30% VOME Diester® 100% VOME Diester®<br />

Engine Precombustion Naturally HDI Precombustion Naturally HDI<br />

technology chamber aspirated chamber aspirated<br />

Reduction in<br />

particle emissions -9% -22% -22% -35% -60% -46%<br />

Reduction in<br />

CO 2 emissions -18% -60%<br />

<strong>PSA</strong> <strong>PEUGEOT</strong> CITROËN - MANAGING BOARD REPORT 75

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