Groupe PSA - Sharp growth and record profitability

Sharp growth and record profitability

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• 40.1% Group revenue growth at €38.6 billion^[1]
• 8.5% Peugeot, Citroën, DS Automotive division recurring operating margin^[3]
• 5.0% Opel / Vauxhall Automotive division recurring operating margin
• 7.8% Group recurring operating margin, at €3.017 billion
• €3.191 billion Group operational free cash flow^[5] of which €1.157 billion for Opel / Vauxhall

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “The Group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds. Opel/Vauxhall teams start to deliver good results to build the New Opel/Vauxhall and are eager to unleash further potential. Our agility and strong focus on execution remain a strong asset to reach our targets.”

Group revenue amounted to €38,595 million in the first half of 2018, up 40.1% compared to 2017 H1 and up 22.9%^[6] at constant 2015 exchange rates and perimeter. PCD Automotive division revenue amounted to €22,149 million up 11.4% versus 2017 H1, mainly driven by volume and country mix (+5.4%), as well as product mix (+4.7%), and sales to partners (+3.2%), offsetting the negative impact of exchange rates (-2.9%). OV Automotive division revenue amounted to €9,946 million in 2018 H1.

Group recurring operating income amounted to €3,017 million, up 48.1% with PCD Automotive recurring operating income up 29.9% at €1,873 million. This 8.5% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to an increase of sales, a positive product mix and further cost reductions. OV Automotive recurring operating income amounted to a €502 million profit in 2018 H1.

Group recurring operating margin stood at 7.8%, up 0.4 pt versus 2017 H1.

Group non-recurring operating income and expenses amounted to -€750 million, compared to -€112 million in 2017 H1.

Group net financial expenses increased to -€218 million compared to -€121 million in 2017 H1.

Consolidated net income reached €1,713 million, an increase of €242 million compared to 2017 H1. Net income, Group share, reached €1,481 million, up €226 million compared to 2017 H1.

Banque PSA Finance reported recurring operating income of €510 million^[7], up 63.5%.

Faurecia recurring operating income was €642 million, up 10.1%.

The free cash flow of manufacturing and sales companies was €2,577 million and the operational free cash flow was €3,191 million of which €1,157 million for OV.

Total PCD inventory, including independent dealers, stood at 412,000 vehicles at 30 June 2018, an increase of 38,000 units from end June 2017. Total OV inventory, including independent dealers, stood at 216,000 vehicles at 30 June 2018.

The net financial position of manufacturing and sales companies was
€8,257 million at 30 June 2018, up €2,063 million compared to 31 December 2017.

Market outlook: in 2018, the Group anticipates a stable automotive market in Europe, and growth of 4% in Latin America, 10% in Russia and 2% in China.

Operational outlook reminder:

The Push to Pass plan sets the following targets for Groupe PSA (excluding Opel/Vauxhall):

• Deliver over 4.5% Automotive recurring operating margin^[8] on average in 2016-2018, and target over 6% by 2021;
• Deliver 10% Group revenue growth by 2018^[9] vs 2015, and target additional 15% by 2021⁹.

Financial Calendar

24 October 2018: Third-quarter 2018 revenue

Groupe PSA consolidated financial statements at 30 June 2018 were approved by the Managing Board on 18 July 2018 and reviewed by the Supervisory Board on 23 July 2018. The Group's Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

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^[1] Group revenue includes OV since August, 1^st 2017

^[2] PCD (Peugeot, Citroën, DS)

^[3] Recurring operating income related to revenue

^[4] OV (Opel, Vauxhall)

^[5] Sales and manufacturing companies

^[6] Versus 2015 H1 at constant 2015 exchange rates and perimeter (excluding Opel Vauxhall)

^[7] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

^[8] Recurring operating income related to revenue

^[9] At 2015 constant exchange rates and perimeter (excluding Opel / Vauxhall)

Opel Insignia Exclusive: Tailor Made Dream Car

• Ideal for individualists: Dream-car in customer-developed colour
• Options open: Exclusive wheels, leather trim and styling elements
• Everything but “standard”: Exclusive experts make each Opel Insignia unique

Create your own dream-car in your favourite colour! No problem with the Opel Exclusive individualisation programme! Opel Exclusive lets Insignia buyers – Grand Sport, Sports Tourer or Country Tourer – choose their personalised colour scheme and select the light-alloy wheels they like most. There are also be special ranges of leather trims and styling elements. Thanks to Opel Exclusive, your car becomes your personal visiting card.

One of a kind – Insignia paint à la Opel Exclusive

With Opel Exclusive, buyers who configure their new Insignia can choose from 15 special colours, in addition to the 10 colours in the regular price list. For an additional €2,500 RRP including VAT,  the spectrum includes Dynamic Orange, Tornado Blue, Panther Black or Light Champagne. However, customers can also give their Insignia a really personal touch. This could be the colour of their favourite tie or their horse box, so that the complete combination is in the same colour, or in any other shade – all for €5,900¹.

Opel Exclusive buyers can also choose their preferred paint finish:
 

• Metallic, containing aluminium particles in various sizes.
• Pearl effect, containing minute fragments of ground mica or aluminium particles.
• Solid finish, for a particularly strong tone, without any additional contents.
• Tinted clear-varnish finish. The final layer of clear varnish is lightly coloured, giving this intensive and brilliant paint additional depth.

A visit to the Opel dealer – and the experts do the rest

The first stop on the way to a dream-Insignia is the local Opel dealer. The customer hands over, for example, a colour sample in the form of a picture, photo or colour code and production of the unique Insignia can begin. Production of the exclusive flagship starts at the Rüsselsheim plant. After a dip into the immersion bath in the paint shop, where the base coat is applied – the body is temporarily removed from the regular production line.

At the same time, the Exclusive experts have already begun their work. Weeks before they actually touch the real body, they begin to develop the colour of the car. Gradually they approach the customer’s preference. As soon as the experts are ready, the customer receives a colour-swatch in the form of a 15 centimetre-long model car. If the customer is satisfied, around nine kilograms of this paint are made. This is sufficient to paint the body, the roof antenna, mirror housings and other add-on parts. The precise colour formula is archived and the customer receives his personal “colour ID”. This can also be found inside the car, in case the paint is needed again. When all the parts are painted, the body returns to the assembly line. Opel Insignia Exclusive is then completed in a computer-controlled process, until it leaves the line as a fully equipped, finished car. Even a smartphone cover with Opel Exclusive logo is available in the chosen colour !

More than a paint job – fine equipment for the Opel Insignia Exclusive

The advantages of Opel Exclusive go far beyond an almost unlimited variety of colours and paint finishes. Customers can also decorate their dream-car with the “High Gloss Black Exterior”: the usually chrome parts such as the grille bar, fog lamps, window frames and – on the Sports Tourer and Country Tourer – roof rails are transformed into high gloss black. Special 18 and 20-inch light-alloy wheels, which perfectly match the dynamic appearance of the Opel flagship, are also available. Inside, customers can further personalise their car with exclusive leather and decorative trims, which can also be combined with “regular” Opel Insignia options.

 ^[1] In Germany.

Opel Gives Glimpse of Future with Next Step of Brand Deployment

• German, approachable, exciting: Brand concept to showcase fine-tuned Opel values
• New Germanness: Open to the world, ‘menschlich’, people focused
• Bold and pure design: Emotional and confident, clear and intuitive
• Compass to the future: Assured, new front identity with focus on brand emblem

While Opel is working hard on becoming a highly efficient automotive company within Groupe PSA as announced by Opel CEO Michael Lohscheller during the presentation of the PACE! strategic plan last November, it is also busy strengthening and fine-tuning its profile. Before the end of the year, a Brand Concept vehicle currently being created in the design studio will show where Opel is heading to.

“PACE! is the compass to a sustainable and successful future for Opel”, said Michael Lohscheller. “In addition to increasing profitability and efficiency, PACE! includes the strengthening of the Opel brand. I have therefore given my teams the tasks of sharpening Opel’s profile and creating a concept car that symbolizes the direction we are headed.”

German, approachable, exciting – these are the three brand values that are embedded in the DNA of every Opel model and initiative and will continue to do so in the future. In recent months, Opel design, marketing and engineering teams have been finding answers to the question how these values can be better embodied by the design, the technology, the substance of the Opel automobiles and the approach the company takes towards its customers. The team around Vice President Design Mark Adams has revisited Opel’s design philosophy and intends to apply some significant fine-tuning when creating the future bestsellers from Rüsselsheim. A first glimpse of what the future holds and what Opel models will look like by the mid-2020s has now been revealed – still hidden under a cover but already showing noteworthy details.

One element the design team was keen to take to a new level is how modern new ‘Germanness’ can be expressed in future products, thus sharpening the brand profile. “New Germanness means that we define ourselves not only based on traditional German values. Of course, engineering excellence, technical innovation and outstanding quality remain important to us. However, modern Germany is much more than this. We are open to the world, open-minded, and truly care about people – in German, this attitude is called ‘menschlich’ – human in a word. Our customers, wherever they live or come from, are our guideline and compass for everything we do,” explained Adams.

Two fundamental pillars of Opel’s future design philosophy are directly derived from this expression of new Germanness: ‘bold’ and ‘pure’. “Opel design is emotional, sculptural and confident, we create exciting designs that stand out. We summarised this with the term bold. A second key aspect of German design is its clarity, intuitiveness and focus. This is captured in the term pure,” explained Adams. Previous iconic designs from Opel’s past clearly relate to these qualities.

One of the most stunning examples of this ‘bold’ and ‘pure’ principle is the Opel CD that wowed an international audience when it celebrated its world premiere at the 1969 Frankfurt Motor Show.

1969 Opel CD and 2018 Opel Concept

These key elements are also clearly visible in the most recent brainchild of the Rüsselsheim Design Centre – the critically acclaimed Opel GT Concept. “Strong proportions, simple but sculptural surfaces, bold graphics, and rare but extremely well executed details – the 2018 Brand Concept we are preparing continues to develop the principles we explored with the Opel GT Concept. There is a clear continuity and consistency in the way we express Opel’s values. However, we have taken several steps forward and are now setting the structure for the future face of Opel. This will be articulated around what we call the Opel Compass,” explained Adams. 

The Opel Compass organises the design elements of Opel’s future face around two strong axes that intersect the brand emblem – which becomes the focus point more than ever before. The centre-crease line on the bonnet represents the vertical axis, which will become bolder and purer in its execution. The horizontal axis is symbolized by the typical wing-shaped daytime running light signature, which will continue to be further strengthened and developed on all future Opel vehicles.

The 2018 Brand Concept, to be revealed before the end of the year, will be the first vehicle to showcase the future face of Opel designed according to the principles of the Opel Compass.

Opel Insignia Debut for Next-Generation Infotainment Systems

• The future of Opel infotainment: On-board navigation with connected services
• Intuitive, stylish, state-of-the-art: Multimedia and Multimedia Navi Pro systems
• Over the air: Live Traffic, real-time fuel prices, map updates and much more
• Harmonise with your Insignia: Personalisation through up to five individual user profiles

Future of Opel infotainment: New generation Multimedia and Multimedia Navi Pro systems make their debut in the Insignia flagship.

Seamless connectivity has become a “must-have” for modern automobiles. Customers nowadays expect to be able to use online services while driving. Opel has received many prizes, such as the “Connected Car Award”, for its major contributions to these developments. Their rapid growth is predicted to accelerate well into the next decade. The Rüsselsheim brand has prepared itself for this next phase of connectivity and in-car entertainment with a new generation of infotainment systems. They will make their debut later this year in the Insignia flagship model range.

The new Multimedia and Multimedia Navi Pro infotainment systems of the Insignia will consolidate Opel’s position as a leading player in infotainment and connectivity. The systems are not only state-of-the-art in terms of functionality, they are also stylish and intuitive to use. Customers enjoy a large colour touchscreen, up to eight inches in size. Additionally, drivers benefit from a high-resolution, clearly arranged Driver Information Cluster that with the Multimedia Navi Pro can be enhanced by an optional head-up display.

Whether connecting by conventional technology such as Bluetooth or USB, or by state-of-the-art phone integration via Apple CarPlay or Android Auto (which Opel was one of the first carmakers to introduce) the Insignia’s new infotainment systems extend Opel’s leadership in in-car entertainment and connectivity. In addition to AM/FM radio as standard, the top sound quality of DAB+ is available as an option. Up to two smartphones can be paired simultaneously.

The top-level Multimedia Navi Pro represents a new generation of Opel on-board navigation systems for the future. New features include connected navigation services for optimum points of interest and destination searches, as well as Live Traffic, real-time fuel prices, parking information according to the destination and online map updates. The additional comfort offered by 3D-map navigation, continuous zoom and smooth scrolling make each journey relaxing and enjoyable.

In the connected state (which requires a tethered smartphone), Live Traffic aggregates traffic information from multiple sources. Flow and conditions are updated in near real-time and integrated into routing. This provides more accurate and timely alerts as well as improved navigation routing. Additionally, Live Traffic shows which parts of the route are affected by delays and what kind of incident may be the cause.

For ease of use, the newly designed Human Machine Interface of Multimedia and Multimedia Navi Pro features an intuitive layout with direct access to main domains (e.g. audio, phone, navigation) via the home screen. The tablet-like controls and swipe-gestures are ergonomic and simple to use. The driver can also operate the infotainment system via controls on the steering wheel. The Multimedia Navi Pro system can be additionally operated by embedded voice control.

To enable the driver to fully harmonise with the Insignia, the next-generation Multimedia Navi Pro infotainment system offers personalisation through user profiles. Up to five drivers can define their own profiles, allowing them to save numerous adjustments from climate-control settings to their preferred equalisation for the speaker system. Favourite destinations, playlists and points of interests are all stored according to the personalised profile, enabling the driver to concentrate on their journey. Future evolutions of the personalisation feature will include personalised search and routing, based on individual driving patterns.

The Insignia model range (Grand Sport, Sports Tourer, Country Tourer and GSi) will be the first to feature Opel’s next generation of infotainment systems.

 

With their stylish design and state-of-the-art functionality, as well as their intuitive operation, Multimedia and Multimedia Navi Pro offer high customer appeal. They will significantly strengthen Opel’s reputation as a leader in seamless automotive connectivity and in-car entertainment. The rollout will continue on additional models later this year and in 2019.

Opel’s X-Family of Sport Utility Vehicles Heads Euro 6d-TEMP Initiative

• Opel Crossland X, Grandland X and Mokka X: Already meet future emissions standard
• Opel Crossland X and Grandland X: New direct-injection petrol and diesel engines
• Opel Mokka X: Turbocharged petrol and diesel power units across the range       

 

Opel is leading the automotive industry in the implementation of Euro 6d-TEMP, which includes Real Driving Emissions (RDE) measured on public roads. The brand has already introduced 85 newly developed engines that meet the future European emissions standard. At the forefront of this initiative is the Opel X-family of Sport Utility Vehicles (SUV) comprising Crossland X, Grandland X and Mokka X.

With the transition to Euro 6d-TEMP, Opel Crossland X and the larger Opel Grandland X compact SUV bring a new generation of 1.5 Diesel engines to the Opel powertrain portfolio. Both the cylinder head and the crankcase are made of lightweight aluminium, while the four valves per cylinder are activated by dual overhead camshafts.

Opel Crossland X offers the 75 kW/102 hp version of the turbocharged four-cylinder engines with Start/Stop. With the manual six-speed transmission, fuel consumption^[1] is 4.7 l/100 km urban, 3.5 l/100 km extra-urban, 4.0 l/100 km and 105 g/km CO₂ combined. Maximum torque of 250 Nm is developed at only 1,750 rpm.

Opel Grandland X compact SUV features the 96 kW/130 hp variant of the 1.5 Diesel, with start/stop and a VGT turbocharger (Variable Geometry Turbine vanes). With a six-speed manual transmission, fuel consumption^[1] is 4.7-4.7 urban l/100 km, 3.9-3.8 extra-urban l/100 km, 4.2-4.1 l/100 km and 110-108 g/km CO₂ combined. Maximum torque of 300 Nm at developed at only 1,750 rpm.

Opel Grandland X 1.5 Turbo D is also available with an advanced eight-speed automatic transmission that not only offers seamless shifting, but also moderate fuel consumption and emissions^[1] (4.5-4.4 urban l/100 km, 4.0-3.9 extra-urban l/100 km, 4.2-4.1 l/100 km and 109-108 g/km CO₂ combined).

For optimum exhaust after-treatment, the emissions reduction system of the 1.5 Turbo Diesel – consisting of a passive oxidation catalyst/NOx adsorber, AdBlue injector, Selective Catalytic Reduction (SCR) catalyst and Diesel Particulate Filter (DPF) – is grouped together as a compact single unit, as near as possible to the engine. The NOx adsorber acts as a cold start catalyst, reducing NOx emissions at temperatures below the SCR light-off.

Thanks to the new 1.5-litre power unit and the existing 130 kW/177 hp 2.0 Diesel (fuel consumption urban 5.3-5.3 l/100 km, extra-urban 4.6-4.5 l/100 km, 4.9-4.8 l/100 km and 128-126 g/km CO₂ combined), which shares the emissions reduction system of the 1.5 engine, Grandland X customers can choose from two powerful, yet very fuel efficient diesels.

The entry level version of the Opel Grandland X comes with the 96 kW/130 hp 1.2-litre Direct Injection Turbo PureTech petrol unit. The three-cylinder engine, which has won the International Engine of the Year award four times in a row, features a Gasoline Particulate Filter (GPF) and is available with a six-speed manual or an eight-speed automatic transmission. The SUV challenger can achieve a top speed of 188 km/h and accelerate from 0 to 100 km/h in 10.1 seconds (fuel consumption manual^[1]: 6.1 l/100 km urban, 4.9-4.8 l/100 km extra-urban, 5.3-5.2 l/100 km and 121-120 g/km CO₂ combined; fuel consumption automatic^[1]: 6.1-6.0 l/100 km urban, 4.9-4.8 l/100 km extra-urban, 5.3-5.2 l/100 km and 121-119 g/km CO₂ combined).

Opel Mokka X: All-turbo engine range starts with 120 hp 1.4 Turbo

For the Opel Mokka X, the transition to Euro 6d-TEMP brings a new, stronger, entry-level petrol power unit, meaning that the bestselling B-segment SUV is now powered exclusively by turbocharged engines. The 88 kW/120 hp 1.4 Turbo with start/stop (fuel consumption^[1] urban 8.1-8.0 l/100 km, extra-urban 5.7-5.5 l/100 km, combined 6.6-6.4 l/100 km, 151-148 g/km CO₂) drives the front wheels via a manual six-speed transmission and replaces the 85 kW/115 hp 1.6-litre, naturally aspirated predecessor.

Opel’s Euro 6d-TEMP rollout is part of the brand’s commitment to becoming a leader in the reduction of vehicle emissions. The next steps in the journey are the introduction of four electrified models by 2020, including the next generation Corsa, which will also be available as a fully electric vehicle, and the Opel Grandland X plug-in hybrid. By 2024 Opel will become a fully electrified passenger car brand, offering an electric version of every model – as a hybrid or a battery electric vehicle – alongside those powered by internal combustion engines.

WLTP driving cycle: More realistic fuel consumption data

The Euro 6d-TEMP initiative from Opel coincides with the introduction of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) for measuring fuel consumption and emissions, which applies to all new car registrations as of this September.

Like the New European Driving Cycle (NEDC), the WLTP is a laboratory test, but while the NEDC determines “urban, extra-urban and combined” values based on a theoretical driving profile, the WLTP uses “real” driving profiles drawn from a global statistical survey. The WLTP driving cycle is divided into four parts with different average speeds: low, medium, high and extra high. Each part contains a variety of driving phases, stops, acceleration and braking that represent everyday driving profiles.

Each engine/transmission combination of a certain vehicle type is tested with the most economical as well as the most fuel-intensive vehicle equipment. The data obtained is comparable worldwide, while NEDC values are only valid for Europe.

Real Driving Emissions: Measurements on the road as well as in the laboratory

When the transition to WLTP began in September 2017, the Euro 6c emissions standard also became a legal requirement for the type-approval of new vehicle types. Types that meet the standard by passing the Real Driving Emissions test (RDE) are type approved according to Euro 6d-TEMP. RDE complements the WLTP and measures the pollutants from cars while driven on public roads, Euro 6c becomes a legal requirement for all newly registered vehicles this September, while Euro 6d-TEMP will apply to all new registrations as of September 2019.

Euro 6d-TEMP has a NOx conformity factor of 2.1, which is the maximum margin of error by which cars are allowed to exceed the NOx limit in real world driving – measured in the RDE test. Euro 6d-TEMP will be superseded by Euro 6d with a NOx conformity factor of 1 (plus an error-margin of 0.5) in January 2020 for new types and from January 2021 for new registrations.

^[1] WLTP measurements converted to NEDC values for comparison purposes.