(AOF) – In 2023, the car manufacturer Stellantis will introduce the Citroën brand in Indonesia by relying on Indomobil Group, its local partner since a partnership was set up in April 2021 with the Indonesian group. The agreement announced yesterday in Jakarta covers brand development, sales and after-sales of Citroën vehicles. The latter will start with the C5 Aircross, the all-electric ë-C4 and the new C3 Citroën. The agreement stipulates that PT. Indomobil Wahana Trada, a subsidiary of Indomobil, will distribute and sell Citroën products on the domestic market.
In the coming years, the group intends to offer a family of compact and versatile vehicles to local customers.
Andrew Nasuri, Indomobil Group Director, Vincent Cobée, CEO of Citroën, and Carl Smiley of Stellantis, Director of Operations for India and Asia-Pacific, attended a ceremony in central Jakarta to announce the arrival of the Citroën brand in Indonesia.
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Key points
– Sixth largest automobile group in the world – 3
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American with 11% market share and 2
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European 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 breakeven point at less than 50% of invoicing and operating margins of more than 2 figures / doubling of turnover, including a quadrupling in the high end, a a quarter realized outside Europe and North America (€20 billion in China) and a third from online sales, from 2024, $5 billion in cash from synergies;
– Innovation strategy: increase in battery capacity to 400 GWh / fuel cell/hydrogen combination for large utilities / new venture capital fund of 300 M€ for advanced technologies / strategic partnerships – Foxconn, Archerl, Engie , Mercedes-Benz, Total, Samsung, Amazon… and academies in digital & data and electricity;
– Environmental strategy aiming for carbon neutrality in 2038 with a 50% reduction by 2030: 100% electric vehicles in Europe and 50% in the United States by 2030, i.e. a total of 5 million per year / new division circular economy – purchase of the reconditioner Stimcar and launch, on 2
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semester, of a circular hub in Europe / partnerships, in particular with Waymo (“Delivery as service” eco-responsible);
– 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.
Challenges
– Persistent shortages of semiconductors leading to a decline in automobile sales and inventories in Europe;
– 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 17% increase in revenues and an improved operating margin of 270 basis points in 1
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semester, 2022 target 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. .