PSA presented this Wednesday morning, at its headquarters in Rueil-Malmaison (Hauts-de-Seine) exceptional financial results for the 2019 financial year. Turnover and net profit are both breaking records: 74.7 billion euros (+ 1%) for the former, 3.2 billion euros (+ 13.2%) for the latter. While the operating margin, an excellent index of economic performance, appears to be one of the highest in the automotive sector: 8.5%, despite a sluggish international market.
From his opening remarks, Carlos Tavares, President of PSA, did not shy away from his pleasure, embarking on a long session of self-satisfaction: “Our teams have once again made the difference and we have achieved record results in 2019 […]. We are ready for the energy transition. "
Two weeks earlier, Renault had carried out the same exercise at Boulogne-Billancourt (Hauts-de-Seine). But between the two French competitors, the contrast is striking. Clotilde Delbos, the acting general manager of the diamond brand, had indeed started her presentation on February 14 with these words: "2019 was a difficult year for the Renault group, and for the Alliance". Before announcing a net loss of 141 million euros. A first for ten years.
How to explain such a difference between the two manufacturers? “Carlos Tavares has implemented, since his arrival in 2014, a drastic policy of cost reduction, recalls a good connoisseur of the group. It was not always easy for the teams to manage. The pressure was such that some preferred to leave the ship. But the results are there. It was in anticipation that PSA was able to gain several lengths ahead of Renault.
The grasshopper and the ant
"While at Renault Carlos Ghosn, then Thierry Bolloré, were spending all their energy to try at all costs to become world number one, ahead of Toyota and Volkswagen, Carlos Tavares defended him, through his" Push to Pass "plan, his strategy frugality, even if it means reducing its sales volume downward, confirms a financial analyst, specialist in the sector. Result, when premium manufacturers make a margin of 4% with cars at € 50,000, Peugeot can take pride in doing twice as much: 8% margin with cars half the price! "
Another advantage of PSA: its two modular platforms (the chassis on which the cars are assembled), which allow it to interchange models and engines (thermal or electric) according to demand, or even unforeseen events, as today the coronavirus crisis in China. This pooling gives the builder great flexibility, and allows significant economies of scale. "This is what notably enabled him to lower the average manufacturing cost per car," continues the first expert. He still has some left under his feet. "
At Renault, Sénart and De Meo have a lot to do
The lion builder has thus succeeded in the feat of reducing this famous average cost of € 111 in 2019. "Insufficient, estimated Carlos Tavares. We aim to go down to minus € 700 by 2021. ”With in addition to the models which are very successful: 3008, 5008, as well as the all-new 208 and 2008. And notable efforts on quality and design. Conversely at Renault, flagship models such as Espace, Koleos and Captur are still struggling to attract, especially on the French market.
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Renault, and through it its future management binomial - Jean-Dominique Sénart, the current president, and Lucas De Meo, who will take up the post of general manager on July 1, replacing Clotilde Delbos -, therefore has some work to do. the board to straighten the bar and try to catch the PSA hare.