PSA Group announces 5% growth in Q1 revenues as it dismisses senior managers in Germany
26 April 2017
26 April 2017
PSA Group increased revenues in the first quarter of 2017 by 4.9% year on year to €13,629 million. The automotive division contributed €9,018 million, up 2.5% on Q1 2016. PSA stated in a press release that this is ′mainly driven by the product mix improvement, linked to the success of recently launched models, that more than compensated the negative impact of exchange rates.’
Jean-Baptiste de Chatillon, Chief Financial Officer of the PSA Group and member of the managing board, said: ′The success of our profitable organic growth plan ′Push to Pass’ is confirmed by our recent launches and the acceleration of our international development. Despite an ever volatile and uncertain economic environment, our agility is more than ever a competitive advantage for achieving our growth and profitability objectives.’ A key objective of PSA’s Push to Pass strategic plan is to ′deliver 10% Group revenue growth by 2018 vs 2015, and target additional 15% by 2021.’ The acquisition of the European division of General Motors, namely the Vauxhall and Opel brands, will naturally contribute to revenue growth already in 2017.
However, the positive financial results and outlook are rather overshadowed by the news that PSA has dismissed three senior managers in Germany. According to an article in the trade journal Kfz-Betrieb, ′the importer has ended the cooperation with Benno Gaessler (Managing Director of Peugeot Germany), Holger Böhme (Director B2B and used cars) and Olivier Ferry (Director Free2Movelease). Director-General Albéric Chopelin assumes responsibilities until new appointments.’
PSA has not commented on the dismissals but Automobilwoche reports that ′the three managers have to bear the consequences for an out-of-control marketing campaign with Sixt Leasing and the Internet provider 1 & 1.’ Late in February, Sixt and 1&1 introduced an attractive leasing deal on the Peugeot 208 which was popular with consumers but angered Peugeot dealers in Germany.
Kfz-Betrieb reports further that: ′The action, which was originally planned until the end of June, was discontinued mid-April. Because of its success. According to ′kfz-betrieb’ information, the parties involved did not impose any ceilings on the contracts. A three-digit sales figure was supposedly expected, but then it was almost five-digit.’ Moreover, one dealer emphasised that: ′With every car, Peugeot heavily burned money.’
Photograph courtesy of Groupe PSA