Philip Varan apparently did not have more knowledge of the Chinese market than his predecessor. In recent days, the CEO of the PSA (Peugeot Citroen Group) stated that he will restart the plan to find a second partner in China. All people including PSA China staff were surprised. With the existing joint venture between Dongfeng Citroën and Dongfeng Peugeot operating mundanely, what are the opportunities for the “second partner†to bring PSA China business?
If negotiations continue in accordance with the memorandum of understanding signed by both parties in 2007, the French will hopefully place their trust in 10 light commercial vehicles. However, after an inventory of PSA's global product lines, it was found that Valan’s decision was not wise. For a French company that has an inherent advantage in small cars, it wants to use Europeanized small commercial vehicles to open up the Chinese market, regardless of consumer demand. There is no reason to speak of cost control.
Typical European small car company
In the product line of PSA's Peugeot and Citroën brands, the core products are concentrated in compact cars and below, and all of PSA's core strengths and techniques are basically to serve small cars.
Peugeot, Citroen and Toyota set up a joint venture company to produce their smallest products C1 and 107 through the B-Zero plan. The same platform also includes Toyota Aygo. These three cars are produced in the same Czech plant, sharing the same cost, and are among the cheapest models. First, it is very popular in European cities. However, in China, they still cannot compete with BYD F0 on cost.
PSA's small cars (A0 class) are all developed on the No. 1 platform. Citroen C3, C3 Picasso, and Peugeot 207 are among the most popular. The Peugeot 207 is currently the largest small car sold in Europe. The domestic 207 is not an original version, but a small fundraising on the basis of 206. It is also sold abroad and is called 206 Plus.
The compact class (Class A) car is basically the largest model with the technical advantage of the PSA Group and was developed on the No. 2 platform, including Citroen C4, C4 Picasso and Peugeot 308, 3008. Among them, the current sales situation of 308 is in line with new golf. The C4 Picasso is the largest selling MPV in Europe.
In a larger market, PSA is covered with platform No. 3, producing Citroen C5, C6, Peugeot 407, and 607. Peugeot has no advantage in large-displacement engines and luxury sedans, and product modeling adheres to distinctive French geographical features, so these products have a small market share outside of France.
Peugeot and Citroen also have several models of MPVs and SUVs, but they basically use technology and cooperation to use Fiat, Mitsubishi and other companies' platforms and engines for production. The market performance is flat.
Comments: Obviously such a passenger car product line is not suitable for the Chinese market. First of all, in the small cars that Peugeot and Citroen are good at, Chinese national brands have an absolute cost advantage, and two joint venture brands simply cannot compete with them. In terms of high-class cars, Peugeot and Citroen products are determined in terms of styling, technology and brand positioning. Their niche position, Citroen Triumph attempts to enter the mid-size car market is proof of failure; the only remaining compact car can seek a little market position, Sega and 307 are also the best two products in China, but also face product aging The problem.
View related topics: China's auto industry recommence mergers and acquisitions wave
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