PSA aims to return to profitability in Russia before 2017

PSA aims to return to profitability in Russia before 2017

Vedomosti – The general director of the French car manufacturer PSA Peugeot Citroen: Carlos Tavares has stated that the company will not leave the Russian market, despite tough conditions. Tavares has added that the company’s aim is to become a profit-making establishment before 2017.

As reported by Vedomosti newspaper, PSA expects a 35% decline in sales in 2015. According to AEB data, Peugeot and Citroen sales have fallen by 75.6% in Russia within the first half of the year, with 5653 vehicles. The market has shrunk by 36.4% in general, during the aforementioned period.

The strategy of Carlos Tavares, who has been at the helm of PSA since last year, is to return the company to profitability within three years. PSA had closed its France factory, reduced the number of employees and stopped pay rises, in order to cut the expenditures. The plan, under the name of “Back in the Race”, proposes the restructuring of the company’s operations in Latin America and Russia, expansion towards markets outside Europe and the optimisation of the products of the Group, by expanding the model range of the premium brand DS.