13 September 2009

Peugeot Production: 2008


Peugeot is the slightly larger part of PSA, or the Peugeot / Citroen company. Peugeot made 2 million cars in 2005, for 3.2% of world car/LCVs manufacturing. In 2008, it had slipped below 3%; 2.9% to be precise. Unlike the ever expanding range of vehicles within the German brands, Peugeot has settled for simply replacing models within the existing range. A careful approach, but one that will inevitably see market share fall over time.

In 2005, 61.3% of Peugeot's were made in France. Despite closing their UK plant, local production has slid to under 40% in '08. A new plant in lower wage Slovakia has been a major factor in the shift to more car manufacturing outside of France.

Car production by country is as follows for '08:

France 39% 760,000
Iran 15% 290,000
Spain 11% 215,000
Slovakia 9.5% 185,000
Czech Rep 5.6% 110,000
Argentina 4.7% 90,000
China 4.2% 80,000
Brazil 4% 77,000
Italy 55,000 2.9%
Russia 3.6% 73,000
Iran 2.8% 56,000
Turkey 31,500 1.6%
Portugal 30,000 1.5%
Rest 2.7% 24,000

Peugeot is a major player in Europe and Latin America but is limited elsewhere. It now sells rebadged Mitsubishi SUVs, as do Citroen also, in an attempt to broaden its product range (see pic). It shares engines with other makers and closer links with Mitsubishi, BMW or another maker are needed as the pressure goes on the world's car makers in these tough economic times.

The bottom line: Peugeot is currently benefiting from schemes to promote sales of smaller cars, but it needs to share costs more often with other manufacturers to hold its own.

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