“We’ve no plans to go retro in our future autos”
On his new CEO job because the starting of February, Alain Favey takes the helm of Peugeot after three a long time within the trade: 20 years at Citroen, then in several manufacturers contained in the Volkswagen Group (VW, Porsche, Skoda and Bentley) after which nº1 of the Europcar mobility group (additionally a part of Volkswagen). On this first interview as Peugeot’s chief, he outlines the quick and midterm future for the French automotive model.
As an trade govt veteran, what was your first notion about Peugeot’s scenario once you began as CEO simply a few months in the past?
Alain Favey: I feel Peugeot is in a really constructive scenario and I’m optimistic about its future regardless of the challenges forward. The multi-energy technique has proved to be the suitable technique for Stellantis on the whole and for Peugeot specifically, because the transition to e-mobility is and can take far longer than the optimistic visions anticipated. I additionally see lots of new concepts inside Peugeot in order that we’re capable of proceed our centennial custom of being revolutionary. Our i-cockpit was a serious breakthrough when it comes to inside design and has advanced from its first model, the outside design of our automobiles is arguably one of the daring amongst mainstream automotive manufacturers in Europe. Additionally, when it comes to buyer care we’re very centered to make the distinction in initiatives just like the “Attract care” via which we’re leveraging the client’s religion in electrical autos by granting them the 8-year guarantee for BEV in most European international locations.
Within the current previous, Peugeot has confronted some powertrain high quality points which may hurt your buyer’s belief. Are you already tackling this critical challenge?
Alain Favey: That’s the first ingredient I’ve centered my consideration onto, as the bizarre high quality issues we had in the previous few years with a few of our powertrains might jeopardise every little thing else we now have been doing nicely. And that’s why we prolonged the guarantee on the Puretech engines to 10 years in order that we might win again the customer-base confidence. We’re reconnecting with prospects, seller community, suppliers, media, and many others. That’s important to reaffirm Peugeot’s French panache, roots and tradition that are our essence.
What can we count on when it comes to product pipeline within the subsequent few years?
Alain Favey: The 3008 and 5008 line-ups are being prolonged with the addition of the brand new era plug-in hybrid powertrains which shall be instrumental to bridge the model till the EV are right here for good. The 5-seater 5008 is coming additionally very quickly, complementing the 7-seater which was launched from day 1. Alternatively, I’m in place to substantiate that we are going to reintroduce the GTI badge on the e-208 vary with all its charisma and sub model values which might be so pricey to us. It’s our solution to present that we are going to proceed to embody motorsport on the highway even with electrical powertrains. And the facelift of the 308, later this yr, shall be additionally a milestone for us. Additionally, within the second half of 2025, we’ll showcase an important concept-car which leaves very robust hints in regards to the evolution of our design language.
So which means you consider there may be house for the GTI badge even in a world of EV?
Alain Favey: We consider the GTI soul may stay inside an electrical automotive, sure. We’ll begin with the 208 – already within the present era automotive – however there is likely to be different functions that aren’t but in our pipeline.
As Peugeot improved its model picture, evidently you would enterprise into a better market section. Is that in your agenda?
Alain Favey: As we see ourselves as an higher mainstream automotive model it positively is smart to look into the highest C and even D section and discover the Peugeot system to try this.
Going to the alternative finish of the market spectrum… what’s Peugeot’s reply to Renault, Citroen and the Chinese language manufacturers which might be coming now with the primary 20 000 to 25 000 EV? And can the longer term 208 be your first automotive with simply an electrical model?
Alain Favey: The 208 successor continues to be two years down the highway and its nonetheless early days to offer extra detailed info. Will probably be launched as a BEV, sure. And we’re already current within the sub-30 000-euro BEV market section with the present e-208 (observe: Peugeot diminished the value of the e-208 by 6,000 euros to twenty-eight,000 euros, nonetheless above probably the most inexpensive new EV from the competitors however a automotive with extra high quality, more room and longer vary).
Peugeot elevated EV gross sales (by 11% to 83 000 models) in 2024, however the e-208 and the e-2008 are slowing down (-23% and -10% vs 2024, respectively), which is regular as a result of lifecycle. You’ve gotten said that Peugeot needs to be the mainstream EV model in Europe. Are you able to quantify what which means and is the truth that these two best-sellers are fading out jeopardise your EV development plans earlier than 2027/28 when the successors e-208 and e-2008 are more likely to be launched?
Alain Favey: Our aim is to spice up EV combine and goal management on our segments within the European EV market which implies a full deal with efficiency when it comes to gross sales, market share, and buyer satisfaction This includes not solely rising the variety of EVs offered, but additionally providing a variety of interesting electrical fashions that cater to varied buyer wants. The market share and EV share shall be a consequence of how nicely we do our job and the way a lot the charging infrastructure develops.
However what in regards to the A-segment, between 10 000 and 17 000 euro, which was once fairly related in Europe and virtually vanished within the final 5 to 10 years? No successors for the 106/107/108?
Alain Favey: The 208 is our entry stage automotive and we now have no intention to go under that market section which mainly disappeared. That buyer is now being served mainly by our initiatives within the used-car market which we now have elevated significantly. For Peugeot, the way forward for the brand new automotive market begins at a better worth stage with extra trendy cutting-edge autos.
The 3008 and 5008, then again, are going full steam forward, with over 30% gross sales will increase in Q1 of 2025. Most probably, you’ll scale back gross sales volumes and luxuriate in increased revenue margins which isn’t a foul place to be at…
Alain Favey: The C-segment is important for us and because the 3008-5008 ranges are being unfold gross sales figures resonate that, naturally. This shall be true within the subsequent many months and can convey us a constructive momentum.
You talked about custom and innovation throughout this interview. And this coexistence can clearly be seen within the GTI model and the French panache you wish to inject in your automobiles which cross with some futuristic tech just like the hyper-square steering wheel and different applied sciences. Will we see Peugeot going retro in some unspecified time in the future underneath your management, simply as your opponents Renault have gone with the R5 and R4 but additionally Fiat which used the Panda nameplate fairness in a fairly completely different approach it did previously?
Alain Favey: Peugeot has all the time been about evolution, disruption however all with the model’s values. In the event you go to our museum, you actually see the Peugeot household began to provide metal elements, saws, pepper grinders, bicycles and, in fact, automobiles. At Peugeot, traditionally, we all the time nurtured our good concepts and merchandise and leveraged them to the absolute best use. However with no drastic disruptions. We’ve no intention at this cut-off date to go retro as a result of we consider there are much better methods to pay homage and profit from the legacy that makes Peugeot what it’s.
What’s your view on the extra versatile EU CO2 targets that you just now might comply to 2 years later than initially deliberate? Did the information about this increased flexibility trigger any technique adjustment for you?
Alain Favey: Effectively, there isn’t any change within the CO2 emission figures we now have to achieve, it’s simply the timeline that has turn into extra versatile. That additionally got here in-line with what the charging infrastructure is true now and the event it wants in order that the EV turns into the rule slightly than the exception.
