The Group's four ambitions

Since its appointment in June 2009, the new managing board of PSA Peugeot Citroën has defined four ambitions for the Group and set priorities accordingly.

To be a step ahead in pioneering vehicles and services

Environmental performance

PSA Peugeot Citroën is a leader in low emission vehicles, which are amongst the best in the world in terms of consumption and emissions. In order to offer a "clean car" that suits the needs of each customer (extra-urban use / urban use / long range with maximum flexibility), the Group will enrich its range of low emission vehicles and technologies over the next 3 years.

• In 2009 and 2010 : small diesel cars emitting less than 99g of CO2/km : Peugeot 207, Citroën C3 and Citroën DS3.
• In 2010 an Electric vehicle in the fourth quarter.
• In 2011 diesel hybrid versions of two premium models : 3008 and DS5.
• In 2012 a full plug-in diesel hybrid Peugeot 3008, emitting less than 50g of CO2.

In terms of other technology, the Group will deploy in 2010 the new generation STT (Stop Start technology) across its ranges, which reduces CO2 emissions up to 15%. In 2011, PSA will launch a 1litre gasoline engine emitting less than 99g of CO2/km in small and medium cars.

Vehicle design

PSA Peugeot Citroen is already a step ahead in vehicle design. Its new concepts & vehicle designs are widely respected, as witnessed by the success of recent launches like Citroën C5, Citroën C3 Picasso or Peugeot 3008.

The Group's first priority is to maintain its new model momentum across all segments in 2009 and 2010. In 2009, the Group will launch both the Peugeot 5008 and the new Citroën C3 in Europe, and a new Citroën C4 (Quatre?) sedan in China. Further new launches are planned for the first half of 2010 such as the Citroen DS3, the Peugeot RCZ in Europe, the Citroen C5 in China and the 207 Pick Up in Brazil.

The Group's second priority is to enhance the value proposition of the two brands in order to increase their pricing power. The Group's objective is also to develop a clear differentiation between Peugeot and Citroën. Having common supervision of the two brands will help to pave the way.

Services

To improve its performance in services, the Group has defined three priorities.

1. Catch up quickly on customer service, where the Group's performance is below par.
2. Improve the Group's financial services offer, where it has a strong position with Banque PSA Finance.
3. Be at the leading edge of mobility and connectivity services to meet the evolving requirements of customers. With regard to connectivity, PSA Peugeot Citroën is a step ahead in emergency call systems, with 650 000 vehicles already equipped in Europe. In mobility, Peugeot is currently testing an innovative mobility credit system with 80 000 customers in 4 major French cities.

To be a global player

The Group's first priority is to reach critical mass in Latin America & Asia, especially China.

The Group's market shares in Latin America and Asia are currently too low to amortise local product and network development costs. To reach critical mass, PSA Peugeot Citroën will focus on sustaining organic growth with new model launches, but the Group will not hesitate to also consider external opportunities.

PSA Peugeot Citroën will accelerate the adaptation of its cars to the needs of non European customers.

In this area, the Group will benefit from the investment it is making in its R&D centres in Shanghai & Sao Paolo. Even though 50% of the cars sold by Peugeot and Citroën are equipped with gasoline engines, there is a need to further improve the Group's gasoline engine offer. The Group will also expand its automatic gearbox offer. To minimise the added cost of these developments, the Group will consider enhancing its current co-operations.

To succeed in this global development, PSA Peugeot Citroën will also make its management teams more international.

To be an industry benchmark for operational efficiency

In the area of operational efficiency, the Group has three immediate priorities :

1. Focus on Group wide excellence. By the end of 2009, all functions will engage in programmes similar to lean manufacturing in production.
2. Pursue the adjustment of the Group's capacity. Plant compacting is an efficient solution for capacity reduction and production performance. This was completed at the Aulnay plant in 2008. The Rennes plant is currently halving capacity and more will come.
3. Put relations with suppliers onto a new footing. With fifteen strategic suppliers the Group is currently building new relations based on co-engineering.

To develop responsibly

This fourth ambition forms the base of the three previous ones.

It transposes the Group's requirements as an employer : workers' safety, of course, but also well-being on the job, and personal growth and development. It is mainly based on the Group's culture of social cohesion.

This ambition also transposes the ethical way PSA Peugeot Citroën must behave towards its stake-holders and its role in society as a responsible company.