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11/03/2008 | Paris – March 11, 2008

Twelve Suppliers Honored by PSA Peugeot Citroën

For the fourth year in a row, PSA Peugeot Citroën’s Purchasing Department has presented its Best Supplier Awards. The honors were given to 12 of the Group’s 800 suppliers by Christrian Streiff, Chairman of the Group, Jean-Christophe Quemard, Vice-President Purchasing, and members of the senior management team.

The awards recognized the 2007 performance of suppliers from France, other European countries and around the world for their relationship with PSA Peugeot Citroën in four critical categories: quality, innovation, spare parts delivery and technical savings.

Criteria for each category include:

  • For quality, a commitment to delivering exceptional quality in the areas of services, industrial equipment and production parts and components.
    • Winners: Bosch Rexroth, Faurecia, Gemmy, Melco (Mitsubishi Electric Corp) and Rehau
  • For innovation, the ability to design and develop reliable, practical innovations that appeal to customers.
    • Winners: Bosch Chassis Systems Control and Wavecom
  • For spare parts delivery, service quality in complying with deadlines and order amounts of replacement parts delivered to dealerships.
    • Winners: Delphi Automotive Systems Corporation and Mark IV Europe
  • For technical savings, cost performance achieved during the year and sources of savings foreseen for 2008.
    • Winner: Magna Cosma

Two companies received a Jury’s Main Award for having achieved breakthrough objectives such as those being pursued as part of the CAP 2010 program.
Winners: Ipsos and Delphi Mechatronic Systems

In 2007, PSA Peugeot Citroën launched the CAP 2010 program and positioned purchasing strategy as one of the key drivers of the Group’s competitiveness, in terms of quality, innovation and costs.
Initiatives carried out with suppliers have shown that the CAP 2010 dynamic is already producing results thanks to four key drivers:

  • Continuous improvement in quality, which has already produced a sharp 50% reduction in supplier quality-defects detected in Group plants.
  • Global sourcing, which is expanding in parallel with the Group’s international development. By 2007, it had increased to just over one-fifth of total purchasing, in line with the objective of doubling the proportion by 2010.
  • A closer partnership with suppliers to achieve technical savings. Some 60 multidisciplinary teams in purchasing, projects and engineering are working to optimize techniques that will deliver their full financial benefits as of 2010.
  • The implementation of a strategic supplier base for co-design processes and relationships. Starting this year, partnerships will be set up to work on 15 strategic functions with a design-to-cost approach.With an overall purchasing budget of €30 billion in 2007, PSA Peugeot Citroën is one of the biggest purchasers in France. Nearly 46 different nationalities are represented in the supplier base, reflecting the Group’s strong international expansion and commitment to working with the world’s best, most capable suppliers.

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