06 December 2013

Peugeot Worldwide Production By Nation : 2012

The Popular 208 Model

Peugeot car/LCV production both at home and overseas is struggling. It seems getting good sales figures to look impressive was more important than sustainable profitability and astute market decisions. If you get the product right and promote it well, then success will follow.

For example, failing to pick up on the SUV trend was inexcusable. If you cannot be at the forefront of market movements, at least follow quickly. Some of the recent crossover type vehicle are good, as has been the strength in small LCVs. Failure to make popular large cars has hurt though. Another issue is pleasing politicians and unions. That is all I will say on that sensitive area.

Looking at the figures below, you cannot help but notice the drop in numbers. A 22% reduction is sharp, as is losing worldwide share from 2.8 to 2.1%. Iran was a major factor, with a -72% in vehicle units made! France was down 18%, Spain -13%, Czech Rep -18%, Brazil -41%, Turkey -31% etc. China was a positive (+24%), as too Slovakia (+45%).

All of this is hopefully realigning production with real demand, selling cars at prices that are profitable. The industry is very competitive and there are too many car makes out there in my opinion. Poor decisions, or not making tough ones, will ultimately hurt Peugeot.

Below green is European car/LCV making, yellow Asia/ME and blue Latin America. It looks fragmented to me, some factories not producing enough to be very profitable.


11 12
2011 Shr 2012 Shr

1 1 France 758,576 35.4% 619,595 37.2%

4 2 China 172,582 8.0% 214,302 12.9%

3 3 Spain 211,894 9.9% 184,819 11.1%

5 4 Slovakia 109,411 5.1% 159,124 9.5%

2 5 Iran 478,719 22.3% 134,299 8.1%

6 6 Argentina 108,565 5.1% 105,128 6.3%

7 7 Czech Rep 91,308 4.3% 74,889 4.5%

9 8 Italy 54,414 2.5% 50,523 3.0%

8 9 Brazil 56,380 2.6% 33,012 2.0%

10 10 Turkey 45,905 2.1% 31,629 1.9%

11 11 Portugal 24,609 1.1% 20,366 1.2%

13 12 Japan 10,319 0.5% 16,340 1.0%

12 13 Austria 19,725 0.9% 9,828 0.6%

- 14 Russia 9,721 0.6%

14 15 Malaysia 2,592 0.1% 3,744 0.2%



Total 2,144,999 2.8% 1,667,319 2.1%

Data source: OICA

Eleventh Placed Brand In World Production

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