PSA Group Launches an Offensive in the Used-Car Market

PARIS--()--Regulatory News:

Driven by the ambition expressed in its strategic Push to Pass plan for profitable growth, the PSA Group (Paris:UG) is putting in place a number of initiatives to expand its presence in the used-car market.

The first concrete step of the Group's new used-car sales strategy was the creation on 1 September 2016 of a dedicated Used-Car Business Unit with an international scope. Headed by Marc Lechantre, the unit will be responsible for defining the strategy and implementing the action plans required to meet the Group's sales and margin objectives across used-car sales channels.

The unit's work covers three channels:

  • B2B market: handling the marketing of the Group's "buyback" cars and finding new ways to source used cars to achieve the highest possible margins in the used-car remarketing business.
  • B2C market: stepping up sales to end customers through the Peugeot Occasion du Lion and Citroën Select labels and through independent networks, and developing a multi-brand online sales business.
  • C2C market: selling services to customers in the peer-to-peer market, notably through offerings linked to online platforms.

To seize opportunities in this rapidly changing market where newcomers are leading the charge, the PSA Group intends to leverage its network (its main partner) to develop used-car sales and related business activities. The Group will be speeding up development of its Peugeot Occasions du Lion and Citroën Select used-car labels and is working to create a similar label for the DS brand. These labels are designed to ensure that the Group's networks worldwide are providing customers with a high-quality offering of used cars and services.

To step up growth across distribution channels, the PSA Group is currently expanding its operations in online used-car sales. The PSA Group and Aramisauto, the French leader in online used-car sales, today announced they have entered into exclusive negotiations in order to conclude a strategic capital alliance to boost the development of online used-car sales and related services. The alliance would allow the PSA Group to enter the online used-car sales market alongside a leader in the field and offer its financing, insurance, warranty and used-car maintenance solutions to Aramisauto's customers.

For the PSA Group, mobility means providing customers with a broad spectrum of transport solutions and smart services that respond to all the diverse new ways of using automobiles. These solutions are united under a single brand, Free2Move.

The PSA Group aims to give customers access to a full palette of car-related mobility services, ranging from multi-brand after-sales service and finance leasing to new mobility services and used-car sales.

Carlos Tavares, Chairman of the Managing Board said: "With the Push to Pass plan, we are going to seize every opportunity in the area of car-related mobility while providing our customers with an innovative solution to their needs in the used-car market. Our goal is to virtually double our used-car sales to 800,000 units by 2021 and achieve a four-fold increase in profit from the business.”

About PSA Group

With sales and revenue of €54 billion in 2015, the PSA Group designs unique automotive experiences and delivers mobility solutions that provide freedom and enjoyment to customers around the world. The Group leverages the models from its three brands, Peugeot, Citroën and DS, as well as a wide array of mobility and smart services from its Free2Move brand, to meet the evolving needs and expectations of automobile users. PSA is the European leader in terms of CO2 emissions, with average emissions of 104.4 grams of CO2 per kilometre in 2015, and an early innovator in the field of autonomous and connected cars, with 1.8 million such vehicles worldwide. It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia. Find out more at groupe-psa.com/en.

Communications Division - www.groupe-psa.com/en - +33 1 40 66 42 00 - @GroupePSA

Contacts

PSA Group
Media Contact, +33 1 40 66 42 00

Contacts

PSA Group
Media Contact, +33 1 40 66 42 00