(AOF) – All models in the Peugeot range will be electrified in 2023, the brand will offer a 100% electric range from 2025, and from 2030 100% of Peugeots sold in Europe will be 100% electric. This is announced by Stellantis in the presentation of its E-Lion project, which “will define Peugeot’s strategy as an electric brand”. The electric 308 and 308 SW will be powered by a latest-generation electric motor, which will develop 115 kW (156 hp) and a range of more than 400 km (WLTP cycle), with an average energy consumption of 12.7 kWh.
The brand is introducing a new 48V Hybrid technology, which will be widely deployed this year with the 208-2008-308-3008-5008 and 408. Thanks to a battery that recharges while driving, a C-segment SUV equipped with the Hybrid system can “in urban driving” operate more than 50% of the time in zero-emission 100% electric mode.
Peugeot predicts that the lifespan of an electric car will be 20 to 25 years, whereas today it is around 15 years for a thermal car.
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Key points
– Sixth largest automotive group in the world – 3rd in the United States with 11% market share and 2nd in Europe with 20%, born in January 2021 from the Peugeot-Fiat Chrysler Group merger;
– Turnover of €162 billion achieved under 14 brands – Alfa Romeo, Chrysler Citroën, DS, Jeep, Opel, Peugeot, etc. -, mainly in North and South America and in Europe;
– Business model adapting the group to the new uses of motorists and the electrification of vehicles via digital transformation, the internal culture of performance (high industrial competitiveness) and social responsibility;
– Capital with 4 main shareholders: the holding company of the Agnelli Exor family for 14.4%, the Peugeot family for 7.2%, the Chinese Dongfeng for 5.6% and BPI France for 5.66%, John Elkann chairing the board of directors of 11 members and Carlos Tavares being managing director;
– Sound financial position: €59.7 billion in available industrial liquidity and €56 billion in equity, against a debt of €34 billion.
Challenges
– “Dare forward 2030” strategic plan:
– maintenance of a balance point at less than 50% of invoicing and operating margins at more than 2 digits,
– doubling of revenues including a quadrupling in the high end, ¼ achieved outside Europe and North America (€20 billion in China) and 1/3 from online sales,
– from 2024, $5 billion in cash from synergies;
– Innovation strategy:
– increase in battery capacity to 400 GWh,
– combination of fuel cells/hydrogen for large utilities,
– new venture capital fund of €300 million for advanced technologies,
– collaborative ecosystem, with more than 160 co-financed projects and more than 1,000 partners involved in autonomous driving, connectivity, manufacturing, electrification technologies and cutting-edge propulsion,
– academies in digital & data and electricity;
– Environmental strategy of carbon neutrality in 2038 via a 50% reduction in 2030:
– 100% electric vehicles in Europe and 50% in the United States;
– new circular economy division – purchase of reconditioner Stimcar, launch of regional circular hubs from 2023, SUSTAINera label – aiming for €2 billion in revenue by 2030,
– electrification and software plans with €30 billion in investments by 2025;
– Integration of the Share now specialist -5 million customers worldwide;
– Securing the battery ecosystem by 5 giga-companies in Europe and North America, by partnerships and by strengthening the supply of lithium hydroxide and CoolSIC chips from Infineon.
Challenges
– Shortages of semiconductors until the end of 2023;
– Execution of synergies –€3.2 billion in net cash in 2021 out of €5 billion expected in 2024;
– Advances in financing activities in the United States and Europe, with high profitability;
– Increase in the operating margin of European activities;
– After a 29% increase in revenues in the 3rd quarter, confirmation of the 2022 objective of a double-digit operating margin and positive free cash flow.
A paradoxical performance
Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .