Groupe PSA SWOT and PESTLE Analysis

Strength

1. Strong focus on customer satisfaction: Around 89% of the customers of the company gave an overall rating of 9 or 10 out of 10 when surveyed about the new product they had bought. In order to preserve such a high level of satisfaction, the company is committed to a programme called “New at 3 years old”. As the name suggests, the company sets the standards for its automobiles in such a way that a customer would feel his vehicle is brand new for at least 3 years after purchase. In order to achieve such a performance, the company maintains a policy of “0 defects” in all its automobiles and various systems involved in them.

2. Continual strong development in used car service segment: Eurorepar Car Service, the company’s aftermarket car repair service, has reached a total of 5000 garages in 26 countries in FY19, growing at a rate of 23% from last year. The company has witnessed a growth of 35% in its independent aftermarket (IAM) spare parts globally in the year FY19, and in Europe this number has reached 70%. This growth shows a strong development of IAM strategy in all regions. Finally, since the company has a strong portfolio of five automobile brands, called as PCDOV (Peugeot, Citreon, DS, Opel, Vauxhall) whose shared supply chain synergies have led to a reduction in logistics costs by 6%, as compared to FY18.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Groupe PSA in CDP’s “Climate change A-list”: The PSA Group has done phenomenal work to reduce the emissions from its vehicles, due to which it has been consistently listed in the A-list of CDP, an environmental disclosure campaign platform. In November 2019, the company’s CO2 emissions reductions targets were certified by SBTi (Science Based Targets initiative) to be in-line with the goal of Paris Climate Agreement of limiting global warming by 2⁰C above pre-industrial levels. In December, the company also ranked No. 1 on the WBA’s (World Benchmarking Alliance) Climate and Energy Benchmark. Although the company has been listed on CDP’s A-list since 2016, the company has made conscious efforts to have its name retained on the list.

2. Focus on innovations to reduce the environmental impact of materials: The global leaders in the automotive sector are highly concerned about the circular economy and sustainable management of materials. Groupe PSA also relies on additive manufacturing which is an industrial process that optimizes material use, for both metal and plastic parts, and for spare parts and customized parts. In 2017, the group launched its first customized application on the DS 3 Dark Side for trim parts and decorative features on the key. All activities related to the circular economy are taken care of by a dedicated business unit which was established in 2018, having the required expertise, from business development to production and retailing. In 2019, Groupe PSA has also pledged to reach an average rate of 30% recycled and natural materials in the Group’s vehicles.