Upmarket attempt with DS brand will meet German’s head-on - some think Tavares
deliberately underselling to please investors later - “to reach their goals the road ahead will
not be easy, particularly given the competition is fully geared up for the same race”
Peugeot’s plan to return to profitability by slashing models and moving upmarket was called unambitious
by investors, although even these low-hanging targets might be difficult to reach given the competitiveness of
the European market.
New Peugeot CEO Carlos Tavares outlined the turnaround plan, labelled “Back in the Race”, which
calls for a two per cent operating margin by 2018 rising to five per cent between 2019 and 2023.
Tavares also targeted €2 billion of operating cash flow in total between 2016 and 2018. Peugeot lost more than €7
billion between 2012 and 2013.
MARKET VIEW | Peugeot - Lion scratching for food
30 Jan 2014
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recovery replaces European slump 03
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