planet - PSA - Planète Plus - PSA Peugeot Citroën

Nº1 JAN.-FEB. 2010 

> 18 Urban mobility 

What place do 

CARS HAVE 

IN CITIES? 

> 04 Interview 

Philippe Varin 

PLANET 

> 30 Performance 

How does 

logistics work?

Liliane LACOURT, 

Senior Vice President, 

Communication 

Editorial 

Planet, the PSA Peugeot Citroën group’s 

in-house magazine, is back after a year’s 

absence. 

We wanted to make it different, for you, 

the readers. 

Different, because we wanted to give 

you a break from the mass of information you 

receive every day. Planet will now be published 

every two months and feature fresh insights 

into the latest news within your company. 

Different, because opening up to the outside 

world is essential. We will be interviewing 

other players in the auto industry, along with 

personalities from other fi elds. 

Different, because we want to be the voice that 

expresses the diversity of your actions focused 

on meeting the Group’s new ambitions. 

At the onset of 2010, our aim is to produce a 

top-quality magazine that respects its readers 

and truly speaks its mind. 

You will be the judge. 

Director of Publication: L. Lacourt – Editor in Chief: G. Bussière – Editorial team: A. Denizanne, MC. Descamps. Contributors: B. Alzati, L. Cicolella. Sub-editor: M. Pétenzi. – Picture research: S. Bader - 

Edition PSA Peugeot Citroën - 12/09. Photo and illustration credits: C. Berger, IP3, J. Lejeune, Citroën Media Library, Peugeot Media Library, S. Meyer, Q.Shen, Shutterstock, N. Zwickel - Production: . 

Printed by: Edipro 

> 2 > PLANETE > nº01 > Jan. – Feb 2010

CONTENTS 

Nº1 JAN.–FEB 2010 

Media 

round-up 

12 

ENVIRONMENTAL 

LEADERSHIP, 

COMPETITIVENESS 

AND MARKETS. 

In pictures es 

24 

LAUNCH OF THE C5 CHINA 

AT WUHAN 2 

Global 

18 

URBAN MOBILITY: 

What place for the 

car in the city? 

Interview 

04 

“PROGRESS AND BOLDNESS” 

Interview with Philippe Varin 

Products 

and services 

14 

CONNECTED SERVICES: 

PSA steps up the pace in 2010 

Latest news ews 

08 

Latest news 

09 

Diary 

Industry 

news 

34 

STRATEGIC VISION: 

An eye on the competition 

Performance 

30 

HOW DOES LOGISTICS 

WORK? 

Global 

trends 

10 

OIL CONCERNS 

Global reserves, 

consumption and trends 

Commitments 

36 

GLOBAL FRAMEWORK 

AGREEMENT: 

14 commitments

Interview / Philippe Varin 

“Combining a dynamic 

of continuous progress 

and boldness” 

WWhat’s your analysis of 2009? 

First of all, the environment was more favourable 

than forecast, for both the European car market, 

buoyed by the scrapping bonuses, and the 

financial markets. The Group got back into 

gear again after a destabilising period. We were 

the only carmakers, along with VW and Fiat, 

to increase our market share in Europe in the 

second half, thanks to a strong product dynamic 

that will continue in 2010. 

Financially speaking, the considerable efforts 

of our teams should bring us positive cash flow 

in 2009. 

Lastly, the General Management and senior 

executives have worked on the foundations 

of the future, on a Vision of what the Group 

> 4 > PLANETE > nº01 > Jan. – Feb. 2010 

should be in 2020. This wide-ranging work 

has only just begun, as each person now has 

to appropriate the Vision. 

How do you see the markets in 2010 and the 

Group’s position? 

Our forecast for the 2010 automotive market 

is cautious because we expect a downturn in 

Europe, following that in 2009. The Chinese and 

Brazilian markets will grow. 

We have ambitious objectives for the new year. 

We will continue to gain market share in all our 

regions, Europe, China and Latin America, improve 

our service quality, especially on lead times and 

after-sales, and implement the PSA Excellence 

System and PSA University at all Group entities.

5 > PLANETE > nº01 > Jan. – Feb. 2010

« Boldness is 

stepping out of your 

comfort zone and 

preparing for 

the future.» 

Interview / Philippe Varin 

What sets the Group’s 

Vision apart from that of 

other carmakers? 

I think there are two 

essential ambitions for any 

carmaker that wants to be 

a world leader: globalisation 

and operating efficiency. 

What sets us apart are the 

three areas where we want 

to establish a lead: ecology, design and services. 

Concerning ecology, we have to broaden our 

offering of carbon-efficient vehicles with CO 2 

emissions well below regulatory limits. 

We will maintain our lead on design, including 

the vehicles we launch internationally. Mobility 

services and connectivity will also be essential 

for the increasing number of urban customers. 

A further differentiation point is responsible 

development. This is the cornerstone of our 

ambitions, the thing that really sets PSA 

Peugeot Citroën apart from other groups. 

How do we combine the efforts on productivity 

announced in the performance plan with 

concerns about well-being in the workplace? 

It is primarily about working better. We have 

to focus on eliminating the waste that exists 

in any organisation, and at all levels. I am also 

convinced that industrial efficiency cannot exist 

without occupational safety and health. These 


objectives have to be addressed with the same 

rigour as our quality objectives. Excellent work 

has been accomplished on ergonomics. We have 

to make progress on safety, by halving the rate of 

occupational accidents in three years. Lastly, we 

will increase our efforts on occupational health 

and psychosocial risks. 

Today we have a lead on CO 2 emissions. With 

all the rival carbon-effi cient vehicles presented 

recently, are we sure we can maintain this lead? 

The potential danger in our performance on CO 2 

is becoming complacent, which would lead us to 

underestimate the competition. Before we were 

the clear leader, but now we are neck and neck 

with some competitors. If we want to increase 

our lead, we have to redouble our efforts. 

I know that the teams are under pressure

to respect very tight schedules in our projects 

in this area. But we have to keep up our hard 

work on R&D regarding Stop & Start and electric 

and hybrid vehicles. We don’t have the choice. 

How do you see the car of the future? 

It will be urban, ecological, hyper-connected and 

feature diverse body styles because the customer 

base will be fragmented. New services and sales 

techniques will also play an important role. 

The centre of gravity will shift to Asia, as it will 

account for 85% of world market growth over the 

next ten years. 

I want PSA with its two brands to continue offering 

cars that mark their era. To be among the frontrunners 

tomorrow, you have to be bold. Boldness is 

stepping out of your comfort zone and preparing for 

the future. And boldness is in the Group’s DNA. 


The Group has confi rmed negotiations with 

Mitsubishi, that could go as far as an alliance. 

What could this strategic move bring us? 

I have stated the three conditions essential to any 

strategic partnership: the creation of value for 

shareholders, alignment with our strategy and the 

continued independence of the Group. 

Mitsubishi recently refocused on several strong 

points on which it is very well positioned in 

South East Asia: electric vehicles, 4x4s and small 

cars. There is a clear complementary fit between 

our two groups, as evidenced by our existing 

partnerships. 

To go further, through a financial alliance, 

the three conditions mentioned above will have 

to be met. Nothing has been decided yet and 

we consider that PSA has the ability to grow 

with or without an alliance. 

Looking beyond its “traditional” priority 

regions, is the Group looking at new 

development zones? 

First of all we have to continue growing where 

we are already present. How credible would we 

be aiming for growth in other markets if we are 

unable to grow and reach critical mass in our 

current markets? Our main priority is Asia, 

and China in particular. This is why the quality 

of our relationship with our Chinese partner 

Dongfeng is important. 

As the year begins, what do you expect 

of the Group’s teams? 

That they meet 2010 objectives, as this will 

be a delicate year. I also want each person, 

whatever his or her place in the company, 

to think about their own contribution to 

the Vision. How to take the lead? How to step 

out of the comfort zone to drive change? 

Having everyone fully behind the objectives 

in the Vision would be a fine objective.

Latest news 

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Peugeot . . . . . . styling . . . . . manifesto: . . . . . . . . SR1 . . . . . . . . . . . . 

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Athletic, balanced and sensual, Peugeot SR1 embodies 

. . . the . strongest, . . . . purest . . . and . most . . . extreme . . . expression . . . . . . . . . . . . . 

. . . of . future . . Peugeot . . . styling. . . . It . also . . heralds . . . the . . new . . . . . . . . . . . 

Peugeot . . . universe, . . . . evidenced . . . . in . the . . new . Lion . . gracing . . . the . . . . . . . . . . . 

bodywork. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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> 8 > PLANETE > nº01 > Jan. – Feb. 2010

PURCHASING 

. . . . . . . . . . . . . . . . 

Showcase 

. . . . . . . . . . . . . . . . 

. . . 

The Purchasing 

Business School DS3 reinvents contemporary art 

. . . 

broadened its range 

. . . 

of professional training The Citroën DS3, the junior model in the DS line, 

in October 2009 

. . . 

with the Master’s 

made its debut at the 2009 Frankfurt Motor Show, 

. . . 

Degree. Divided into 

where it charmed the Press and public alike. It was 

two parts - economic 

. . . 

intelligence and 

love at fi rst sight for some, with 1,100 people already 

. . . 

behaviour - this high- having ordered their DS3 online. Citroën launched a new 

level course enables 20 

. . . 

experienced purchasing 

season at its C_42 exhibition centre on the Champs 

. . . 

employees to perfect Elysées on 4 December, transforming the showcase into 

their skills in strategic 

. . . 

and challenging 

a DS3 Concept Store. Visitors get to specify their own 

. . . 

negotiations. Trainees DS3 and have their picture taken at the wheel of their 

conclude their 

. . . 

Master’s Degree with 

personalised version. Starting on 18 January, Citroën will France 

. . . 

a presentation in 

be inviting the international media to a DS3 exhibition 

front of a jury of PSA 

. . . 

managers. 

at the Fondation Cartier contemporary art Concept cars . . . 

centre in Paris. The lucky journalists 5 - 14 February . . . 

will get the chance to cruise 

. . . 

Parisian boulevards at the This unique exhibition 

wheel of the distinctive 

features a panorama of . . . 

newcomer – the fi nest 

the latest concept cars, . . . 

jewel in the fi nest of with more than 25 models on . . . 

settings. 

show in a 2,000m . . . 

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2 

transparent structure at the 

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foot of the Invalides dome in 

. . . . . . . . . . . 

Paris. The show also focuses 

. . . . . . . 

on the heritage of 

international automotive 

Spain 

design and environmental 

protection issues. 

“Auto, sueño y material” show 

Y 

ou don’t have to be a car fan or a tuning 

enthusiast to check out the “Cars, Dreams 

and Materials” exhibition in Madrid on the 

place of the automobile in contemporary art. Sixty 

artists revisit the automobile and automotive engineering in a diverse 

collection of work ranging from the fantastic to the futuristic. 

http://www.madrid.org/centrodeartedosdemayo/ 

Diary 

25 

January 

World reveal of 

the Peugeot 408 in 

Beijing 

22 to 31 

January 

Retromobile 2010: 

Vintage car show in 

Paris 

10 

February 

Publication of PSA 

2009 fi nancial 

results 

12 to 14 

February 

WRC: Uddeholm 

Swedish Rally 

(season opener) 


March 

Launch of the 

Citroën DS3 and 

Peugeot RCZ 

4 to 14 

March 

Geneva Motor Show

OIL concerns 

It’s time to cut our use of “black gold”, an essential but 

fi nite – and CO 2 emitting – resource. 

Viewpoint 

Béatrice Perrier, 

technical and 

economic engineer 

in energy (DTI/ 

DPMO/CSCT/SYFM) 

Between now and 2030, 

there will be no oil 

shortages and it will remain the 

dominant energy for transport 

because it produces liquid fuels with 

high energy density at a competitive 

price. But availability will remain 

restricted and production is expected 

to plateau at 100 to 110 million barrels 

a day, compared with 85 million today. 

Vast reserve potential exists today, but 

GROUP INDICATORS 

Cash consumption in 2009 (base 100) 

Strong results from action plans: 

Positive free cash fl ow at end-October: 

• positive free cash fl ow, boosted by rise in invoicing and improved 

automotive markets 

• inventory under control following strong reduction in fi rst half 

• investment and R&D expenditure in line with budget 

100 

50 

25 

0 

2009 projections 

2009 actual 

- 25 

febr. march april may june july augu. sept. oct. nov. dec. 

Global trends 

most of it in the hands of OPEC (see 

below), which uses oil strategically to 

infl uence its price. Private 

multinationals such as BP, Exxon, 

Shell and Total own barely 5% of 

global reserves. 

World demand for kerosene 

and diesel continues to rise, 

driven by the explosion in road and 

air transport, to the detriment of 

petrol, surpluses of which are 

increasing as petrol demand in the 

USA trends downwards. This 

phenomenon is heightened in Europe 

by the growing share of diesel 

powered vehicles. 

Responding to this demand, refi ners 

are stepping up diesel production, 

which increases the cost price of the 

fuel and the CO2 emitted during its 

production. If the fi scal advantage of 

Market share, Europe1 (year-to-date at end-November 2009) 

(Car + LCV) 

Group market share 

year-to-date in Europe in 

November 2009 was down 

0.15 points on 2008. For 

the same period, Citroën 

took a 6.47% share of the 

market and Peugeot 7.15%. 

1 Europe 30 countries = 

European Union + EFTA 

+ Croatia 

diesel were to be reduced, prices at 

the pump could rise. This reinforces 

the need for carmakers to develop 

small and effi cient petrol engines 

With insecurities over oil supply 

and the fuel’s contribution to the 

greenhouse effect, we need to 

diversify the energies we use for 

transport, by using renewable fuels 

and natural gas and introducing 

compatible engines with improved 

effi ciency.” 

Extra info k The Organization of Petroleum 

Producing Countries (OPEC) was founded in 

September 1960 to establish a common strategy 

on oil production and sales. The member 

countries – Saudi Arabia, Iran, Iraq, Kuwait, 

the United Arab Emirates, Qatar, Algeria, Libya, 

Nigeria, Venezuela and Ecuador – account 

for 75% of global reserves. 

VW 

20.4% 

Others 

13.6% 

PSA 

13.6% 

Ford 

10.4% 

BMW 

4.4% 

Daimler 

5.0% 

Renault 

9.5% 

Toyota 

5.1% 

Fiat 

9.3% 

GM 

8.7%

OIL: GLOBAL RESERVES, CONSUMPTION AND TRENDS 

Oil reserves are not spread uniformly across the planet; two-thirds are to be found in geopolitically unstable areas. Proven reserves are estimated 

at 1,300 billion barrels, with at least six times more in potential reserves. 

97 % 

THE SHARE OF WORLD 

road transport 

dependent on oil 

(petrol, diesel, LPG). 

Market share in priority regions (year-to-date November 2009) 

In Russia, Peugeot and 

Citroën increased their 

market share by 0.5 

points and 0.4 points, 

respectively. In China, 

Peugeot lost 0.3 points 

and Citroën 0.1 points. 

In Brazil, Peugeot and 

Citroën lost 0.4 pts and 

0.3 pts, respectively. 

In Argentina, Peugeot 

was down 1 point and 

Citroën up 0.3 pts. 

50 % 

The share of total 

OIL PRODUCTION 

CONSUMED by road 

transport every year. 

+0.9 pt 

30 % 

THE SHARE of oil in energy 

consumption in 2030, 

compared with 34% 

today. 

Peugeot 

2.1 

Citroën 

0.8 


2.9 


1.3 


1.9 


3.2 

Russia (Car + LCV) China (Car registrations, 

local production and imports) 

Proven world 

reserves in 2008 2 

(in billions of of barrels) 

Highest consumers 

in in 2008 (in thousands 

of f barrels a day) 

Trends in 

consumption 

consumptiion 

-0.4 pt -0.6 pt -0.7 pt 

> 11 > PLANETE > nº01 > Jan.-Feb. 2010 


2.7 


2.3 


5.1 

Three major Réserves petrol mo mondiales 

flows to the prouvées USA en 2008 

(en milliards de barils) 

One major diesel 

flow from Russia Zones / pays les plus 

to Europe consommateurs co 

en 

Geopolitical 

2008 20 

risk 

(en 

areas: 

milliers de 

Middle East, 

barils 

Venezuela 

par jour) 

Potential reserves: Tendances Tendancess 

dde 

extra heavy consommations 

consomma oil (Venezuela), ati 

tar sands (Canada), ultra-deep 

offshore oil Trois off the flux coasts majeurs d'ess 

of Brazil and convergent Africa. vers les État 

Brazil (Car + LCV) Argentina (Car + LCV) 


9.3 


4.2 


13.5

Media round-up 

Les Echos, France, 15 September 2009 

«CO 2 : Fiat steals title of cleanest 

carmaker from PSA» 

On the basis of CO 2 

emissions, Fiat 

now sells the least 

polluting cars in Europe. 

According to a study 

by the Transport and 

PSA response 

by Grégoire Olivier 

Executive Vice President, Automotive 

Programmes and Strategies 

“True leadership is measured in the number of f carbon-effi b fficient i vehicles hi l sold ld 

and not just in average emissions. On that score, PSA Peugeot Citroën is 

the clear leader. For the third consecutive year, the Group is the only 

carmaker to have sold more than 1.1 million vehicles in Europe emitting less 

than 140 g/km of CO2 . We aim to consolidate this leadership: our objective is 

to sell one million vehicles emitting less than 120 g/km of CO2 in 2012.” 


Environnement association, 

which promotes sustainable 

transport in the EU, the 

Italian carmaker ousted 

PSA Peugeot Citroën 

from the top spot in the 

rankings of automotive 

manufacturers having sold 

the vehicles with the lowest 

average CO 2 emissions per 

km in Europe last year. 

Fiat is only slightly ahead 

of PSA Peugeot Citroën, 

however, at 138 g/km versus 

139 g/km. Renault remained 

in third place, at 143 g/km. 

[...] For the second year 

in a row, the BMW group 

reported the strongest cut 

in emissions, placing it in 

the top ten.” 

Article : 

Alexandre Counis

Fortuna, Argentina, 

30 october 2009 

«It is essential 

to remain 

competitive» 

P SA 

Peugeot Citroën is one 

of the biggest employers in 

Argentina and one of the 

companies that contributes the 

most to exports in the 

country,” said Mr Varin. […] 

The Chairman also 

underlined that PSA was one 

of the few companies to 

have not reduced 

investment during the crisis. 

Over the last fi ve years the 

Group has invested nearly 

USD 500 million in the 

country. He added: 

“For activity to develop, 

it is essential to remain 

competitive.” This was the 

major concern expressed by 

Philippe Varin to President 

Cristina Fernandez de 

Kirchner during an interview 

on Wednesday 28 October, 

adding after the interview 

that he was “very confi dent”. 

Le nouvel Observateur, France, 

19 November 2009 

«Philippe Varin 

breaks taboos» 

I 

t was a spectacle to make 

the motoring press green 

with envy […]: last Thursday 

[Ed.: 12 November 2009 at 

the ADN research centre in 

Vélizy near Paris] 40 fi nancial 

analysts and 15 economic 

journalists stared wide-eyed 

at a parade of the Peugeot 

and Citroën models that will 

be launched in the next 

three years. [...] The new 

boss simply “wanted to give 

the markets confi dence” 

by showing them the 

abundance and quality 

of products under 

development. 


Chinadaily.com, China, 


«The booming 

car market» 

T his 

will be a key year 

for carmakers in China, 

as vehicle production and 

sales in the last ten months 

topped the 10 million mark 

for the fi rst time ever. This 

boom in production and 

sales has not only brought 

benefi ts to automotive 

manufacturers and 

customers. It also presents 

a new challenge in terms 

of road safety and 

environmental protection. 

[…] Given the size of the 

Chinese market, only 

low-consumption vehicles 

will enable a continued rise 

in the car market. 

Cinco Dias, Spain, 


«PSA combines 

it’s self-owned 

network» 

O ne 

of the measures 

decided by Group 

Chairman Philippe Varin 

was to combine the c400 

self-owned dealerships of 

the two brands into a single 

entity. […] The Group’s 

dealerships together sold 

nearly 430,000 cars last 

year, or more than 13% 

of total registrations. 

The management’s decision 

now means that around 

1,500 Group employees 

work for the new entity, 

under the leadership of 

Jean-Claude Play, head of 

the self-owned network.

The Autonomous Telematics 

Box (ATB) project team. Back, 

left to right: Michaël 

Chandebois (DA), Mony Thai 

(DTI), Stephan Cayet (DM), 

Sébastien Vignier (DTI), Pierre 

Lecointe (DTI) 

Front, left to right : Marie 

Olivar (DTI), David Guenard 

(DTI) 

> 14 > PLANETE > nº01 > Jan. – Feb. 2010

Connected services: 

PSA STEPS UP THE 

PACE IN 2010 

PSA Peugeot Citroën has been the European leader in Telematics lematics since 

2003 with its emergency call system. In addition to its technological 

chnological 

expertise, the Group now brings its customers a portfolio o of 

advanced and affordable connected services. 

I 

t wasn’t the Virgin Mary,” 

says a driver after an 

accident. It was the voice 

of an operator at the 

emergency platform 

informing him of his geographical 

position. “After rolling over several times, 

I was upside down. I was really happy 

someone was able to locate my position […] 

the emergency services arrived in ten 

minutes.” This driver had just 

experienced the automaticallyactivated 

local emergency call system. 

Some 2,500 lives would be saved every 

year in Europe if all vehicles were 

equipped with this system says the 

European Commission, which wants 

to introduce regulation to make it 

mandatory (under the name of ‘e-call’) 

by 2014. 

«With the rollout of the local emergency 

call system, which began in 2003 and is soon 

to be available in 11 European countries, PSA 

is the leader in connected services,” says 

Franck Batocchi, head of Telematics Services at 

the Brands Department. “We have sold 

700,000 vehicles equipped with the system so 

far and our objective is one million for 2011.” 

Products and Services / Telematics 

Only BMW and Volvo offer a similar 

system, for their high-end products. 

The added extra with PSA’s system is 

that customers are answered in their 

own language whatever European 

country they are in. In addition, the 

Group was the fi rst to be approved by 

the French Civil Safety Directorate, in n 

2007. “Thanks to our advanced position, PSA SA 

has strong market potential,” says Franck 

Batocchi. 

«To maintain its lead, the e Group is 

launching an an autonomous 

onboard telematics box in early 

2010.» 

A small box that makes all the 

difference. To maintain its lead, the 

Group is launching an autonomous 

onboard telematics box (ATB). 

Customers equipped with this box, 

dedicated solely to telematics services, 

no longer have to have a complete 

system (navigation, radio and 


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. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

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. . . . . . . . . . . . . . 

. . . . . . . . . . . . . .

telephone) to access the emergency call 

and local assistance system. 

A partnership with the telephony 

operator P&T Luxembourg will enable 

coverage of 27 EU countries. The SIM 

card, now “embedded ” in the box, now 

becomes a permanent onboard fi xture, 

paving the way for new connected 

services. The ATB will be rolled out 

gradually and in most Group vehicle 

ranges starting in spring 2010. 

The ATB will also give Business 

and Fleet customers a competitive 

advantage. The Active Fleet Data 

service offered by Peugeot and Citroën 

for a year now in France allows fl eet 

managers to better control the overall 

costs of their fl eet. They receive regular 

information on the use of their vehicles, 

including fuel consumption, together 

Products and Services / Telematics 

Citroën Send-To-Car 

Citroën in partnership with Google launched an all-new trip assistance 

service at the Frankfurt Motor Show, using Google Maps, customers 

can now, prepare their route from home or work, sending destination 

points to the NaviDrive 3D system in their vehicle! Citroën is the fi rst major 

carmaker to offer this kind of service. “Citroën Send-To-Car once again 

gives concrete expression to the brand’s Créative Technologie strap line,” 

says Philippe Allot, Customer Relations Project Manager at Citroën, “and 

strengthens the premium positioning of the C5, the fi rst model to be fi tted 

with the system.” Launched in September 2009 in France and Italy, the 

technology is set for release in Germany before the end of the year. 

Find out more k http://sendtocar.citroen.fr/ 

with real-time alerts in the event of 

technical problems. “Our competitive 

advance will be reinforced with the 

integration of the emergency and assistance 

call system in our department in the second 

half of 2010,” explains Dirk-Marco 

Adams, head of Innovation Services for 

Business Customers at the Brands 

Department. “The competition today isn’t 

coming from other carmakers but from 

equipment suppliers like Masternaut and 

Winfl eet.” 

PSA’s innovative ability is also 

evidenced in offers for motorists 

looking for more peace of mind. 

The Group launched a safety camera 

alert system, WIP Info Radars Peugeot, 

in October 2009. It is the fi rst carmaker 

to include this kind of service in 

navigation systems and sell it directly 


via download. “Peugeot wanted to rapidly 

meet a strong demand voiced by customers 

who use onboard navigation systems,” says 

Hubert Tourny, new technologies 

project manager at Peugeot. Following 

the successful French launch, the new 

service is to be deployed in several 

other European countries, staring with 

the UK before the end of 2010. For its 

part, Citroën offers customers a trip 

assistance service (see inset). 

Connected services are a key 

priority in 2010 in the Group’s 

priority regions. Services will be 

developed according to technical 

compatibility, regulatory framework 

and market potential. Carmakers are 

beginning to offer connected 

services in China, essentially in 

high-end ranges. In Latin America,

Following tests in 

Rennes, Nantes, 

Brest and Lyon, the 

prepaid mobility 

service, “Mu by 

Peugeot”, will be 

rolled out in Paris 

at the end of 2009 

and in the main 

European cities in 

2010. 

«Future telematics systems will be based 

on permanent connectivity between 

the vehicle and the internet.» 

where customers are big on connected 

and safety services, the Brazilian 

government wants to make a vehicle 

localisation box, the “rastreador”, 

mandatory by the end of 2010. To this 

end, PSA has developed an offering 

that can remotely cut fuel supply. 

“Future telematics systems will be 

based on permanent connectivity between 

the vehicle and the internet. We will be able 

to bring our customers an additional range 

of services that they can build up as they 

choose,” says Eric Pierrejean from 

Customer Innovation Services at the 

Brands Department 

Jean-Paul Durand 

“Mu by Peugeot” 

Project Manager 


MU 

BY PEUGEOT 

PEUGEOT LAUNCHES 

A PREPAID 

MOBILITY CARD 

C 

ustomers can now use a 

prepaid card to rent a Coupé 

Cabriolet, light commercial 

vehicle, moped or electric bike 

in the Peugeot network. Peugeot is 

adapting to new customer needs, 

because future mobility will be about 

more than simply owning a vehicle. 

Customers arrange the rental at 

Peugeot’s online boutique, where they 

can also book hotels, plane tickets or 

even driving lessons. “Electric vehicles like 

iOn will soon be available,” says Jean-Paul 

Durand, Project Manager at Peugeot’s 

Communication and Marketing 

Department. “Everything is possible – 

we’ve only just begun with mobility 

services!” 

Find out more k http://www.mu.peugeot.fr/

WHAT 

PLACE DO 

CARS HAVE 

IN CITIES? 

Global / Urban mobility 

Urban mobility has accelerated and grown more 

complex worldwide. City-suburb and suburb-suburb movement 

has increased, mainly because high property prices have 

chased some of the population out of city centres. While cars 

still play an important role in cities – and even have a statusenhancing 

effect in some countries – their image has suffered. 

The mass use of cars has caused congestion and both environ- 

The Automobile 

will continue to play an active role in 

urban areas. Half of the world’s population 

lives in cities and their suburbs. This share 

will rise to 60% by 2020 and 80% of city 

dwellers will live in emerging countries. 

mental and noise pollution. In Europe, where 60% of car 

journeys are made in urban or semi-urban areas, daily vehicle 

use has actually decreased since 2006, with a 22% drop within 

the Paris city limits. 

Mobility occurs in two forms: The fi rst of 

these is based on cars, which remain essential for people who 

have few alternatives or need to get from A to B outside of 

public transport hours or access. Secondly, the car is one of a 

> 18 > PLANETE > nº01 > Jan-Feb 2010

Urban traffi c in 

Wuhan, China. 

China overtook 

the US in 2009 to 

become the world’s 

biggest car market. 

Annual vehicles sales 

are expected to rise 

from an estimated 

12 million in 2009 

to nearly 14 million 

in 2010. 


ange of mobility resources, especially for city populations. 

The structure of cities and the automobile are closely linked. 

Jean Philippe Théry, head of Customer Surveys and Strategy 

at the Latin America Department, explains that in Brazil, 

“the urban environment is structured on the US model, with city 

centres neglected to the benefi t of outlying ‘prestigious districts’, 

wide avenues, urban motorways, relatively easy parking and giant 

shopping malls. Automobiles reproduce and heighten the social 

inequality characteristic of the country”. The population is split 

into those who have cars and those who cannot afford them 

and thus rely on public transport. Rio, where the number of 

parking spaces is decreasing, is the exception. The city’s 

geography is forcing it to take on the European city model, 

with a higher social mix using buses and underground trains. 

Another factor is found in emerging countries: cars are still 

powerful symbols. Beyond their functional dimension, automobiles 

are still seen as status-enhancers, particularly 

three-box saloons. 

Genuine environmental 

sensitivity 


Old European 

city: 

Paris 

All the world’s big cities are choked by car traffi c and are 

placing new emphasis on environmental concerns. This will be the theme 

of the “Better City, Better Life” exhibition at Expo 2010 in Shanghai, which 

PSA will be participating in at the French pavilion. Numerous local authorities 

are introducing measures to restrict urban car traffi c, with 

congestion taxes, residential parking, bus lanes, and cyclist and pedestrian 

zones. In São Paulo, the “rodízio” system bans the use of vehicles one day 

a week on the basis of the last digit on registration plates. In Japan, buying 

a vehicle is dependent on owning a parking space. The city of San 

Francisco is trying out residential parking on a “yield management” basis, 

i.e. fl exible pricing according to demand. Environmental sensitivity is 

genuine, even if the primary motivation is economic. And customers are 

willing to invest in clean vehicles, by taking running costs and resale 

values into account. 

> 20 > PLANETE > nº01 > Jan-Feb 2010 

Two urban models: 

Paris and São Paulo 

- clearly defi ned border: 

city centre versus outlying 

area 

- heritage-rich: historic 

charm, a sightseer’s 

delight 

- strong attachment to way 

of life: walks, outdoor 

cafés, theatres, etc. 

- city sleeps at night 

- reduced automobile 

mobility 

- gradual exclusion of cars: 

pedestrian areas, bike 

paths, tramways 

- increase in new forms of 

mobility: carsharing, 

“autolib” electric car 

sharing plan, taxi sharing, 

rentals 

Megalopolis with 

surging population: 

São Paulo 

- no fi xed boundaries: 

dispersed and sprawling 

urban structure 

- business city: business 

market fi rst and foremost 

- cultural diversity 

and modernity 

- city that never sleeps 

- insuffi cient public 

transport 

- cars still rule: no 

pedestrian areas, no bike 

paths, no tramways 

- no emerging mobility 

solutions 

- cars are private forms 

of transport, for solo use; 

vehicle size decreasing; 

success of new onboard 

technologies

Defi nitions 

Urban area 

Populous urban unit 

in which most human activity 

is concentrated. 

Mobility 

An individual’s ability to 

create a physical link between 

their home and activities and 

to enable changes of location. 

Key fi gures 

1 billion 

City dwellers in China in 2030. 

3 hours minimum 

The time some São Paulo 

residents spend commuting 

in their car every day. 

(1) Inhabitants of Sao Paulo 


Urban mobility has 

grown more dense 

and complex. 

All the world’s big 

cities are “choked” 

by traffi c and are 

placing increasing 

importance on 

environmental 

concerns. 

50% 

of Parisians have a car – the same 

percentage as in 1900! 

At the beginning of the 20th century, 

the carless population consisted of old 

people who never left their ‘quartier’, 

while today it is made up of young 

people who use public transport. 

9% 

of households own cars 

in China, compared with 

85% in Europe.

CARS HAVE TO 

INTEGRATE WITH 

MODERN LIFE 

To convince people to 

choose cars, they will 

have to be reinvented. 

They have to stir the 

imagination and present 

new features that are 

functional, emotional and 

sensory, and all to the 

benefi t of mobility. 


To convince people to choose 

cars, they will have to be reinvented. They 

have to stir the imagination and present 

new features that are functional, emotional 

and sensory, and all to the benefit of 

mobility. Household car ownership rates 

are linked to place of residence and 

increase with rises in income and the 

number of children. This rate is also high 

amongst the elderly, who have developed 

leisure mobility. Four considerations come 

into play when a person chooses whether 

or not to use an automobile, to which is 

added a key factor: the idea of pleasure 

and freedom. First, people have to control 

their budgets and travel times. Second, 


Peugeot BB1 on the 

streets of London. 

The vehicle turned 

a lot of heads in its 

European capital 

tour. 

they have a functional criterion: the facility 

to transport their children, shopping and 

equipment. This is where the Citroën C3 

Picasso offers valuable versatility. The 

third consideration is the pleasure linked 

to the physical comfort provided by the 

transport mode, together with accessibility. 

Lastly, individuals consider ethical and 

environmental factors concerning vehicle 

use. The freedom offered by the immediate 

accessibility of cars and the pleasure 

associated with driving remain decisive 

criteria in vehicle choices.

To convince people to choose cars 

and factor in environmental constraints, a 

new relationship has to be formed between 

automobiles and the city. “Cars that are ‘set 

in their ways’ are no longer acceptable in today’s 

world. To make cars legitimate in the city again, 

they have to readdress the modern values that 

are the mastery of space and time,” says Pascal 

Feillard, head of Advanced Customer and 

Market Research Automotive Prospection , 

Customers and Markets, at the Group. “We 

have to create a new image for vehicles, to make 

people feel less guilty and stigmatised, cars with 

a balance of ethics, practicality and pleasure.” 

People want technological solutions 

to make essential car use consistent with 

their environmental and fi nancial concerns. 

This involves several responses, 

including hybrid drivetrains, electric vehicles 

and ecodriving – all of which PSA is 

working on. Cars have to be seen as mobility 

tools, integrated in their environment 

through telematics services (see page 14). 

Cars have to be able to receive information 

that helps customers get from A to B and 

optimises their transport times. Customers 

are used to new technologies and 

expect to see them in their vehicle. In 

countries where urban car trips can take 

a very long time, anything that makes the 

car an extension of the home environment 

is particularly appreciated. 

Cars are becoming living 

spaces where people “recharge their batteries”. 

The provision of information will 

thus become a major issue in coming 

years, with carmakers playing a role in 

developing services such as parking 

reservations or pre- 

ventive maintenance 

(see inset on Mu by 

Peugeot on page 17). 

They will be crucial to 

developing a modern 

collective take on the automobile and 

giving it back the place it deserves in 

today’s cities. 

Tell me more 

Carsharing: 

A company or collective 

provides a very short-term 

car rental service 

to users, with or without 

a subscription. 

Intermodality: 

The use of several modes 

of transport for a single 

journey. 

Invent a car that combines 

ethics, practicality 

and pleasure 


Expert 

Jean François Doulet, 

Professor of Research 

and head of the China 

Programme of the “Cities 

on the Move Institute” (1) . 

The Cities on the Move Institute (IVM) is 

a forum that brings together a network of experts 

looking for new urban mobility solutions. 

Our commitment is part of our continuous drive 

to innovate. 

Mobility issues are crucial in China, where two 

main trends clash. Firstly, car ownership is 

booming, resembling the situation in Europe in the 

30 years after World War II. Secondly, the country 

is innovating on new forms of mobility. China is 

like a huge laboratory, both for itself and for other 

countries that could build on China’s experience 

to fi nd original solutions. To meet the massive 

demand for mobility, the Chinese government 

is investing in road infrastructures and public 

transport, including bus lanes with high frequency 

services. Taxi and car-sharing services co-exist with 

a range of mobility services managed by local 

authorities such as ‘public bikes’. 

The car represents a twofold breakthrough, both 

socio-cultural and technological. It symbolises 

the rise of individualism, even though restrictive 

policies could in the future modify driver behaviour. 

State-backed Chinese carmakers have strong R&D 

strategies on reducing energy consumption. 

The government is raising the population’s 

awareness of “green mobility” and as soon as 

solutions are available, it will no doubt promote 

their implementation.” 

(1) Founded by the Group in 2000, Cities on the Move is an 

association under the French law of 1901 that leads innovative 

social and scientifi c actions and works to increase knowledge 

on urban mobility.

C5, Dongfeng 

Citroën’s fl agship 

The C5 has been specially 

adapted to meet the 

requirements of the Chinese 

market, in particular gaining 

a new 2.3-litre petrol engine. 

Dongfeng Citroën’s fi rst luxury 

vehicle, the C5 completes 

Citroën’s range in China and 

gives the brand access to the 

M2 segment, which accounts for 

more than 20% of the market. 

LAUNCH 

OF C5 CHINA 

AT WUHAN 2 

Portfolio / Wuhan 2 

Operational from 17 November 2009, 

the new DPCA (Dongfeng Peugeot Citroën 

Automobile, a joint venture between PSA and 

the Chinese group Dongfeng) production plant 

was designed to produce high-end models. 

Featuring the most advanced technologies, 

the plant meets stringent standards on quality 

and reduced energy consumption. Above all, 

it was developed to be completely “Lean”, 

on a par with the best plants of both PSA 

Peugeot Citroën and our competitors. Take 

a guided tour of the plant… 

> 24 24 > PLANETE > nº01 > Nov. Jan.-Feb. – Dec. 2010 2009

An environmental and pleasant plant 

Wuhan 2 is a model plant in terms of working conditions and 

energy savings. It has airy and bright production areas that 

use as much natural light as possible. The height of the plant 

buildings was reduced to save on energy consumption. 

> 25 25 > PLANETE > nº01 > Nov. Jan.-Feb. – Dec. 2010 

2009

26 > PLANETE > nº01 > Nov. – Dec. 2009 

The body shop 

The body shop complies 

with the highest group 

standards. For the first 

time for a group vehicle 

in China, laser brazing* 

is being used on some 

body parts, giving a 20% 

reduction in energy use 

in this production area. 

This technique also 

enables faultless welding 

between parts, enhancing 

aerodynamics and thus 

cutting fuel consumption. 

*Technique of assembling two metal 

sheets with molten metal.

C5 coming off the line 

The first C5 rolled off the 

Wuhan 2 production line on 

17 November 2009. Volume 

increases continue at the site 

with an objective of 5,000 

vehicles a month in 2010. 

The plant was designed to 

produce as many as four 

different vehicles at a rate of 

44 vehicles an hour. 


Assembly 

A technician mounts a door 

on the C5. The assembly 

shop at Wuhan 2, after the 

Kolin plant in the Czech 

Republic, has the most 

optimised surface area of all 

PSA Peugeot Citroën plants. 

All assembly operations have 

been standardised to apply 

the best quality practices and 

teach new operators the best 

handling techniques. 

> 27 27 > PLANETE > nº01 > Nov. Jan.-Feb. – Dec. 2010 2009

Quality control 

for exterior supplies 

A technician checks the 

glass quality of a C5 

window. Reaching a zerodefect 

level relies on the 

rigorous inspection of all 

materials delivered to the 

plant. Suppliers are selected 

according to strict criteria. 


> 28 > PLANETE > nº01 > Jan.-Feb. Jan-Feb 2010 

Quality control 

Operators make visual and 

manual inspections of a 

C5 body to make sure it is 

faultless. Complete geometric 

compliance of bodies in white 

is checked by laser camera. 

If operators detect a problem, 

they inform their supervisor. 

The vehicle moves on to the 

next phase only once the 

problem has been rectifi ed.

Young, top-level 

employees 

A group expert talks with 

plant employees. Wuhan 

2 has recruited an average 

50 people per week, 

training them thoroughly 

and rigorously. The 

site already has 1,000 

employees, a number that 

will rise to 1,200 in 2010. 

The average age of new 

recruits is 24. 

> > 29 29 > > PLANETE > > nº01 > > Nov. Jan-Feb – Dec. 2010 2009 

Polish and paint 

An operator polishes 

a C5 body in white before 

it goes to the paint shop. 

To satisfy customer 

expectations in the luxury 

segment, paint quality 

has been improved. The 

paint is extremely thick 

and highly resistant to 

wear, and corrosion in 

particular.

How does 

LOGISTICS WORK ? 

In a global world, the quality of logistics services 

contributes to the image of the company. Which methods 

does PSA use to enhance performance and make sure it 

meets the commitments made to its customers? 

B 

e it foodstuffs, cultural 

products or cars, correctly 

satisfying customer orders 

relies on the efficiency 

of logistics systems, the complexity 

of which is often overlooked. 

Delivering thousands of products, 

which often transit through several 

countries before reaching their 

final destination, requires the 

implementation of material and 

information flows. 

The correct operation 

of Group activities relies on three 

Logistics in fi gures 

9,000 

PEOPLE work in the logistics 

business line. 

10YEARS 10ANS 

MINIMUM beyond the end of 

production: the time span 

during which the Group 

commits to providing 

vehicle parts. 

8,000 M3 OF KNOCKED-DOWN KITS 

are shipped every day, 

the equivalent 

of 160 transcontainers. 

2,100,000 

ASSEMBLED VEHICLES were 

transported worldwide 

in 2008. 

Performance / Logistics 

main logistics flows, for assembled 

vehicles, for knocked-down kits and 

for spare parts and accessories. The 

first two are the responsibility of the 

Operational Logistics and Planning 

Department (DPLO), while the third 

is the duty of the Parts and Services 

Department (DSP). 

In 2008 the Group produced 

and delivered more than 2,100,000 

vehicles, shipped 8,000 m 3 of 

knocked-down kits and filled 

56 million order lines for spare 

parts and accessories. To do so, it is 

Component 

transport 

Legend 

Information flow 

Material flow 

Parts 

order 

Supplier plant 

. . . . . . . . . . . . . . 

. . . . . . . . . . . . . . 

. . . . Knocked-down . . . . . . . . . . . kits 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . 

The Group has a special logistics fl ow for shipping 

. . . knocked-down . . . . . kits . . (CKDs) . . . to . production . . . . sites . . . . . . . 

. . . . . . . outside . . . Europe, . . . to . China, . . Brazil, . . . Argentina, . . . . and . . . . . . 

. . . . partner . . . assemblers . . . . . in . Iran . and . . Turkey, . . . for . example. . . . . . . . . . 

. . . . These . . . fl ows . . require . . . the . careful . . . construction . . . . . of . . . . . . . . 

. . . . international . . . . . logistics . . . . plans . . that . . factor . . in . customs . . . . . . . . . 

. . . . constraints. . . . . . Parts . . are . shipped . . . . mainly . . by . sea . . in . . . . . . . . 

. . . . transcontainers . . . . . . and . . require . . . special . . . packaging . . . . designed . . . . . . . 

. . . . to . ensure . . . quality . . . at . the . lowest . . . cost . . for . the . shipped . . . . . . . . . 

. . . . components . . . . . by . optimising . . . . the . . volume . . . transported, . . . . . . . . . . 

. . . . a . key . environmental . . . . . . issue. . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


Pr

ojections 

sent 

Assembled vehicles 

The customer orders a new vehicle 

Final assembly plant 

Planning 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

. . . . . . . . . . 

Production 

order 

Customer 

order 

Spare parts 

delivery 

Final assembly park 

Peugeot or Citroën 

network 

Peugeot or Citroën 

network 

Vehicle 

transport 

Transit park 

Network park 

Spare parts 

The customer has a vehicle serviced or repaired 

Spare parts 

order 

Dual-brand distribution outlet 

dedicated to the self-owned network 

Spare parts distributor Spare parts distributor 


Planning 

Vehicle 

transport 

Spare parts 

transport 

Vehicle 

transport 

Subsidiary park 

Spare parts 

order 

Spare parts 

transport 

Spare parts 

transport 

Supplier plant 

Spare parts warehouse

equipped with a veritable engineering 

system that designs and builds flows 

and packaging processes, and also 

optimises the logistics chain,also 

known as the supply chain. 

“Planning is at the core of our logistics 

system,” explains DPLO Director Alain 

Besnard. “Its purpose is to meet the 

needs of the brands by reconciling two 

parameters: the flexibility of volumes and 

the product mix with the performance of 

the production base and transport, which 

is based on standardisation and the 

reduction of variability.” On the basis 

of market projections, market share 

objectives and inventory conditions, 

Logistics in fi gures 

800 

SUPPLIERS 

(including 360 spare 

part suppliers) 

and more than 2,500 

shipment supplier 

sites. 

3,000 

TRUCKS are received 

every day at fi nal 

assembly sites. 

Performance / Logistics 

Parts being transported inside a Work Unit at Rennes using a small train. Loading CKDs on a ship in Le Havre. 

production requests are expressed 

in vehicles or in parts. The resulting 

production plan takes into account 

the production possibilities at the 

Group and at suppliers. 

The departments concerned 

implement “Lean” tools and methods 

to roll out PSA’s excellence system. 

DSP used project mode and visual 

management to reduce stocks by 

€43 million between the end of 2008 

and the end of October 2009, with no 

reduction in service rate. In addition, 

it freed up nearly 3,000 m2. “Spare 

parts availability and rapid delivery are 

the major satisfaction criteria identified 

225,000 

SPARE PART ORDER 

LINES are shipped 

every day. 

700 

TRUCKS A DAY pass 

through Vesoul, the 

Group’s main spare 

parts and CKD centre. 


by our customers, so we implemented 

action plans to improve the reliability of 

the information on lead times supplied to 

them when a spare part is out of stock,” 

says Yves Fallouey, head of logistics 

at DSP. The number of vehicles off 

the road, at roughly 1,300, has been 

halved since 2008 and processing 

times have been cut from 11 to 6 days. 

The “Service Quality Indicator” stood 

at 95% year-to-date at the end of 

November, against an objective of 

95.1%. This is the threshold beyond 

which additional logistics costs rise 

significantly, with no real return in 

terms of customer satisfaction. 

At DPLO, logistics is better 

integrated into the production 

process and activities are 

streamlined, with collection loops for 

transport, small trains for line-side 

distribution, and a reduction in the 

size of packaging and stocks so that 

operators have all the parts in their 

immediate vicinity. If we look at one 

of the indicators in the vehicle flow, 

it is clear that the Group is managing 

inventory better, at around 67 days, 

which means it is not losing sales or 

consuming too much cash.

Transporting C3 and DS3 models by truck at Poissy. 

Nevertheless, the supply 

chain can still be improved further, 

and any inefficiency, even if it affects 

a very low number of customers, has 

a direct impact on our service quality. 

Progress in planning and logistics will 

be made through improved delivery, 

with increased reliability and reduced 

times. These 

essential points are 

being reviewed by 

a cross-functional 

working group, 

focusing as a 

priority on New 

Vehicle flows. The 

group’s work is based on material and 

information flow analysis (MIFA*) for 

orders, launched in 2008 by DPLO. The 

Group is thus working to make its entire 

system more robust. 

* MIFA : Material and Information Flow Analysis 

Find out more k Intranet DTI/DPLO 

and Intranet DM/DSP 

Balancing the fl exibility of 

volumes and product mix 

with the performance of the 

production base and transport. 

Shipping spare parts in sea-freight crates from the Vesoul site. 


Logistics chair 

PSA is an active member of the Supply Chain 

teaching and research chair founded in 

2008 by Ecole Centrale Paris, on an initiative 

by DPLO. The fi ve other founding members are 

Carrefour, Danone, DHL, GEFCO and Vallourec. 

Discussions betweens students and professionals 

in logistics bring together activities in research 

and innovation that are of common interest. 

The Group benefi ts from the skills of the 

students and, since 2008, the chair has trained 

100 PSA employees in “Supply Chain 

Management Essentials”. The classroom sessions 

are followed by fi eld visits of production sites 

and partner logistics sites. The chair is concluded 

with seminars featuring experiential exchanges. 

As observed by school director Hervé Biausser, 

“The objective of the chair is to bring transversal 

solutions to common problems posed by all the 

companies, whatever their fi eld of activity”.

AN EYE 

on the competition 

A strategic vision is essential 

to meeting the challenges 

of a global economy. This 

vision constitutes a common 

project and a framework of 

action for companies, whose 

scope varyies according to 

the group. 

We looked at the strategic 

vision of other carmakers. 

An alternative view / Strategic Vision 

B 

usinesses build their 

strategic vision on the basis 

of their values, the direction 

they want to take and the 

context outside the company. This 

vision has to be powerful, be realistic, 

it has to fuel impetus, to respond to 

market expectations and trends. It 

also has to be compatible with the 

organisational resources of the company 

and suffi ciently long-term to serve as 

a guiding line for as long as a decade. 

And the vision has to be shared by 

all employees so that each one can, 

through his or her actions, contribute to 

its implementation. 


Sustainable mobility is a new 

strategic challenge. Changes in the 

automotive industry are leading all 

carmakers to focus on innovation and 

launch increasingly “clean” vehicles. All 

manufacturers are also recognising the 

fact that markets in emerging countries 

(especially China) will soon become 

bigger than the US market. 

Sustainable mobility 

is a recurrent issue. Toyota, BMW and 

VW, among others, are looking at how 

to optimise it in the future.

With its “Monozukuri” vision, 

Toyota is projecting itself into 2020 

through a harmonious alliance of 

natural and industrial cycles to 

continuously create added value for its 

customers. To illustrate this vision, it 

has launched a futuristic site showing a 

3D city and its mobility systems (www. 

toyota-future.com/). 

The Volkswagen group, through 

“Strategy 2018”, is aiming to become 

the economic and ecological leader. The 

Group makes a systematic connection 

between the environment, labour and 

social responsibility and profi tability. 

The company’s highly detailed strategic 

vision now informs all of its actions, 

aimed at ousting Toyota from the 

number-one spot by 2018. 

BMW’s “Number One” strategy – its 

vision for 2020 – is built on four pillars. 

The fi rst is growth, with the carmaker 

forecasting an increase in the global 

market and more demand for premium 

products and services in which design 

will play an even more important 

role. It is also forward-looking, with 

an imperative of reductions in both 

emissions and fuel consumption “for 

a sustainable mobility”. The group 

is also focused on cost reduction 

(through reduced waste and improved 

environmental management), and 

aimed at broadening mobility services 

for customers. 

Honda meanwhile believes in the 

“Power of dreams”. “Dreams inspire 

us to create innovative products […] 

And it’s our mission to share these 

dreams with others and to make them 

a reality.” 

http://www.volkswagenag.com 

http://www.bmwgroup.com 

http://corporate.honda.com 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . Visions of mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . 

Mobility is also an issue in the strategic pillars of its economic development. 

. . . visions . . . of . other . . . transport . . . . companies. . . . . . It . has . . a . sustainable . . . . vision . . . of . this . . development . . . . . . . . . 

. . . . . . . In . France, . . . . SNCF . . in . its . “Vision . . . 2012” . . . . including . . . . complementary . . . . . . . measures . . . . in . a range . . . . . . . 

. . . . considers . . . . “a . mobility . . . . that . . respects . . . . . . . . of . fields: . . . sector . . . consolidation . . . . . with . . large . . . . . . . . . 

. . . . sustainable . . . . . development . . . . . criteria” . . . . and . . aims . . to . Chinese . . . . groups . . . able . . to . rival . . global . . players, . . . . . . . . . 

. . . . broaden . . . . its . service . . . offering. . . . The . . Brazilian . . . . . . and . . massive . . . . investment . . . . in . “clean” . . . vehicles . . . . . . . . . 

. . . . company . . . . SuperVia . . . . is . planning . . . . alternatives . . . . to . . and . . new . . drivetrain . . . . energies, . . . . including . . . . . . . . . . . 

. . . . car . . transport . . . . by . getting . . . into . . trains, . . . . . . . electricity. . . . . . Debates . . . are . . under . . way . . in . the . . . . . . . . 

. . . . underground . . . . . . trans . . and . . buses. . . The . . Chinese . . . . . country . . . . on . urban . . mobility . . . . and . . the . place . . . . . . . . . 

. . . . government . . . . . sees . . the . . automobile . . . . as . one . . of . the . . of . cars . . in . the . . city. 

. . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


TOP 12 

Worldwide carmaker 

rankings at end- 

November 2009 

Rank Group Sales 

� Toyota 6,0 

� VW 5,3 

� G.M. 5,1 

� Hyundai 4,2 

� Ford 4,0 

� Honda 2,8 

� PSA 2,7 

� Nissan 2,5 

Fiat 2,1 

� Suzuki 1,9 

� Renault 1,8 

Chrysler 1,1 

SOURCE: DFDS/DCG/BEVS/STAT

Commitments / Social Responsibility 

THE GROUP’S SOCIAL 

RESPONSIBILITY: 

A WORLDWIDE 

COMMITMENT 

PSA Peugeot Citroën signed a framework 

agreement in 2006 setting out its worldwide 

commitment on social responsibility. So where 

does the Group stand three years on? 


P 

SA Peugeot Citroën’s 

development is founded 

on socially responsible 

principles and actions 

that are major assets for 

its growth and its sustainable economic 

performance. Through the framework 

agreement, the Group commits to 

respecting fundamental human rights 

and the excellence of human resources 

practices. It also pledges to share these 

requirements with its partners and take 

into account the impact of its activity 

on the regions where it is present. The 

agreement concerns all the employees, 

their representatives, trade unions, 

suppliers, dealership networks and 

industrial partners. “The cornerstone of 

our agreement is that not only did we get 

international trade unions like the 

International Metalworkers’ Federation 

(IMF) and the European Metalworkers’ 

Federation (EMF) onboard; we also included 

the local trade unions in the main countries 

where PSA employs staff,” explains 

Philippe Dorge, Director of Social and 

Labour Relations. This wide-ranging 

deployment applies to 31 countries on 

four continents and all Group entities 

(production sites, sales subsidiaries, 

Banque PSA Finance, GEFCO, etc.), or 

110 subsidiaries. 

The framework agreement 

includes 14 commitments (see below) 

and policy is coordinated using an 

application guide. “To keep Group 

subsidiaries moving ahead in the same 

direction, we need a system that lets them 

know what to emphasise,” says Philippe 

Dorge. Every year, each subsidiary 

selects three priority actions for which 

it redoubles its efforts. Involved right 

from the beginning of the process, the 

subsidiaries are highly committed and 

local trade unions are regularly 

consulted for their advice. “We 

sometimes ask for additional efforts on 

some measures in the agreement,” says 

Rubén Pérez Prego, a member of the 

European Committee of the trade union 

at Vigo, UGT. “For example, more 

involvement from suppliers in applying the 

agreement or improved working conditions 

in a context of increased productivity.” 

1. 

2. 

Avoid complicity in 

human rights abuses 

Uphold freedom of 

association and the 

effective recognition of the 

right to collective bargaining 

3. 

Effectively abolish 

child labour 


PSA’s policy also includes 

a labour audit conducted by an 

external body to verify correct 

application of the agreement at 

subsidiaries. “Apart from the audit itself, 

the advantage of the agreement lies in the 

dynamic it creates based on the different 

commitments,” says Michel Tissier, head 

of the external audit fi rm. “It has helped 

step up the pace of labour-management 

dialogue at some subsidiaries, notably in 

countries in Central and Eastern Europe and 

at sales subsidiaries. A further advantage is 

that the review is not made by just the HR 

teams but also includes the management 

The 14 commitments in the global framework agreement 

Fundamental 

rights 

This deployment applies 

to 31 countries on four 

continents and to all 

Group entities. 

4. 

Eliminate discrimination 

and promote 

equal opportunities 

5. 

6. 

Fight against 

corruption 

Safety, working 

conditions 

and health

committee and employee representatives 

thanks to the deployment system in place.” 

Three years after signature, 

the review made in June 2009 showed 

strong involvement in the agreement, 

which has given rise to practical 

actions at most subsidiaries. The 

number of subsidiaries applying all the 

commitments rose signifi cantly 

between 2006 and 2009. In 2009, 87% of 

the subsidiaries had completely 

appropriated the agreement. Some, like 

GEFCO, have turned the agreement into 

a real tool for coordinating their HR 

Human 

Resources 

Management 

and 

Development 

7. 

Develop skills 

of the future 

through professional 

training 

8. Provide 

employees 

with the means 

to participate 

9. 

Take a labouroriented 

approach to changes 

in activity 

Commitments / Social Responsibility 

1. 2. 

policy. For growth regions such as Latin 

America, the agreement is also an 

opportunity to comply with global 

standards. “Even entities having gone 

through reorganisations haven’t abandoned 

their action plans, while new entrants have 

rapidly taken the agreement onboard,” says 

Philippe Dorge. The audit also pointed 

to actions that need to be improved, 

including assistance for small entities 

and staff communication on the 

contents of the agreement. A “library of 

good practices” containing practical, 

easily implemented examples has 

subsequently been created. 

10. 

Remuneration 

11. Social 

protection 

12. Negotiate 

work 

organisation 


Commitments 

concerning 

exterior 

players 

Jyrki Raina, secretary general of IMF, 

comments: “Based on regular and 

systematic meetings, PSA’s global 

framework agreement is used to effi ciently 

organise human resources at international 

level. It is a tool that works via a proactive, 

positive and modern control mechanism 

enabling progress through dialogue rather 

than confl ict”. 

“To go further”, says Denis Martin, 

Executive Vice President, Human 

Resources, “we have to propose an 

amendment to the trade unions that is fully 

consistent with the Group’s fourth ambition: 

13. Social 

requirements 

shared with suppliers, 

subcontractors and 

distribution networks 

Take account of 

14. the impact of 

the company’s activity 

on the areas in which it 

operates

3. 

‘the requirement of responsible 

development’. This concerns forward-looking 

thinking on future professions and jobs in 

line with industrial and technological 

The review showed that the 

agreement has been well 

appropriated and given rise 

to practical actions at most 

subsidiaries. 

changes, as well as respect for the Group’s 

ethical principles, environmental protection 

and occupational health. This should happen 

in spring 2010.” 

Find out more k Net’RH > Applying the 

rules > Ethics and Social Responsibility 

4. 


1. The extended European Group committee, 

composed of 46 members from 15 countries, 

meets twice a year. 

2. The Group’s actions have for many years 

now been refl ected in actions on equal 

opportunities, diversity, the employment of 

women and the integration of people with 

disabilities. 

3. The agreement applies to all entities: 

production sites, sales subsidiaries, Banque 

PSA Finance, GEFCO, etc. 

4. The growing globalisation of the Group 

brings with it fresh social and environmental 

challenges. 

Rollout 

Interview 

Teresa Violante, 

HR Manager for Portugal 

The agreement has enabled us to step up 

the pace on labour-management dialogue and 

identify additional areas we need to work on to 

make progress. One of the fi rst things we did 

was to create an indicator for each 

commitment and a monthly follow-up chart. 

At the Citroën subsidiary in Lisbon, the 

indicator on freedom of association is the 

number of labour topics discussed and 

processed. For safety, working conditions and 

health, we rate the number of accidents and 

their severity. We also monitor cases of 

harassment and verbal attacks that are fed 

back to us. The results are reviewed every 

month with the Management and any drift is 

taken care of. In 2010 we will be stepping up 

our efforts on working conditions to better 

meet the requirements in the Group’s safety 

management system. Finally, we hope to 

assess progress more often with staff 

representatives and would like more 

involvement on the part of managers 

to encourage everybody to get behind 

this agreement.”

Two concept cars, 

two worlds, two 

atmospheres. 

Pure white 

for the Peugeot BB1 

and scarlet for the 

Citroën Revolte.

planet - PSA - Planète Plus - PSA Peugeot Citroën

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