Success Story Continues: Opel has already produced more than 300,000 All-New Corsa

Opel Corsa GS Line Plus

New Corsa remains a guarantee of success for Opel: Latest generation of the classic small car has rolled off the production line in Zaragoza, Spain, around 300,000 times already, to be delivered to customers all over the world. Since the market launch of the Corsa in November 2019, the car has been a real winner and has taken various awards. 

The 300,000 unit of this model, a brand new white Opel Corsa GS Line Plus with a black roof, has just been delivered to its new owner at the Stellantis plant in Zaragoza, where it is manufactured exclusively worldwide

For example, the fully electric Opel Corsa-e was honoured with the “Golden Steering Wheel” as the most popular small car in Germany in 2020.

Opel Corsa-e was honoured with the “Golden Steering Wheel”

Elsewhere, the Corsa is also proving hugely popular with the customers.Smallest model in Opel’s product portfolio was not only the best-selling vehicle in the small car segment in Germany in 2020 – it is also leading the way in its segment this year. And, at times, the new Corsa was the best-selling car across all segments in the UK last year – a position it is currently holding this year too. 

Vauxhall Corsa

From Chile to Reunion and Morocco to South Africa: Opel Corsa is also in great demand outside of Europe. International Opel Corsa sales almost tripled in 2020 and things are continuing to improve at the beginning of 2021: Opel Corsa sales in the Middle East / Africa export regions, Latin America and Asia / Pacific have already more than doubled in the first two months of 2021 compared to the entire first quarter of the 2020. Opel Corsa also plays a central role in further expansion plans and will, among other things, herald the brand's comeback in Japan. This makes the Corsa an important pillar of Opel's export offensive.

Corsa is also key to Opel’s comprehensive electrification offensive. In the first two months of the year alone, more than 4,000 Corsa-e were sold. Private and fleet customers are equally enthusiastic about the suitability for everyday use.

Opel Corsa-e

“Corsa is a real success for the Opel brand and the new generation is continuing the long tradition of this model. With the Opel Corsa and the new Opel Mokka, which has just arrived at our dealers, we have two new convincing models on offer in very important segments. This will give us noticeable impetus,” said Opel CEO Michael Lohscheller.

Opel Corsa also gives customers access to technologies and assistance systems more often found in higher market segments. The top features include the adaptive, glare-free IntelliLux LED Matrix light that Opel offers for the first time in the small car segment. In addition, the small car bestseller comes with numerous advanced driver assistance systems. Thanks to the high-tech front camera, traffic sign recognition detects a wide range of information, such as LED signs. The speed limits saved in the system appear on the display. Forward Collision Alert with Automatic Emergency Braking and Pedestrian and Cyclist detection is active at speeds from 5 to 85 km/h and increases safety considerably, especially in dense city traffic. Adaptive Speed Control automatically adapts the gap between the car and the preceding vehicle by decelerating or accelerating. If the preceding car decelerates, the Corsa also slows down –even to a standstill, if necessary. If the preceding car gains speed again, the Corsa also accelerates up to the selected speed. Lane Keep Assist applies gradual corrective steering and a gentle nudge if the car leaves its lane unintentionally. Side Blind Spot Alert, the 180-degree camera and various parking assistants facilitate manoeuvring in the city.

Opel Corsa-e is compact, nimble and suitable for everyday use thanks to its range of up to 337 km according to WLTP 1. 50 kWh battery can be fast-charged to up to 80 per cent state-of-charge in 30 minutes. Opel Corsa-e is ready for all charging options – via wall box, high-speed charging or cable for household sockets – and an eight-year/160,000km warranty covers the battery.

Opel Corsa-e

[1] Range determined according to WLTP test procedure methodology (R (EC) No. 715/2007, R (EU) No. 2017/1151). The actual range can vary under everyday conditions and depends on various factors, in particular on personal driving style, route characteristics, outside temperature, use of heating and air conditioning and thermal preconditioning.

Stellantis: Building a world leader in sustainable mobility

• A new company with the agility, creativity and efficiency to capture the opportunities of the new era of mobility, offering innovative solutions that will help change the way society moves
• Rich heritage stemming from storied and iconic automotive marques, innovative mobility brands and deep roots in the communities in which it operates
• Well positioned to compete in global markets with 39 electrified vehicles available by the end of 2021
• Significant scale with well-established commercial positions in Europe, North America and Latin America
• Strong opening balance sheet
• Targeting more than €5 billion of annual steady state synergies
• Robust governance structure from Day One dedicated to creating superior value for all stakeholders
• Unwavering commitment of the 400,000 employees to exceed consumer expectations and pursue greatness

Carlos Tavares and John Elkann

Today marks the launch of Stellantis NV [STLA] (“Stellantis” or “the Company” or “Group”), a world leader for a new era of sustainable mobility dedicated to providing freedom of movement with distinctive, affordable and efficient transportation solutions uniquely positioned to capture the exciting opportunities of a global industry undergoing rapid and profound change.

Formed from the combination of two groups with strong track records and sound finances, Stellantis is a truly global company of 400,000 diverse, highly talented and experienced employees who design, develop, manufacture, distribute, and sell vehicles and mobility solutions around the world while remaining deeply rooted in the communities in which they live and work.

11-member Board of Directors is led by Chairman John Elkann. Carlos Tavares as Chief Executive Officer leads one of the most experienced and successful management teams in the industry whose diversity, experience and competitive spirit are amongst its key strengths. With a deep bench of executive talent relentlessly committed to improvement and innovation, Stellantis is well-positioned to continue its founding companies’ track record of value creation for all stakeholders guided by a common principle: challenge the status quo.

With a proud heritage stretching back 125 years, Stellantis is home to a full portfolio of storied brands that have graced the road and conquered the podium in the world of motorsport. Founded by visionaries who infused these marques with passion and a competitive spirit, the brands cover the full spectrum of market segments from luxury, premium and mainstream passenger vehicles to hard-charging pickup trucks, SUVs and light commercial vehicles, as well as dedicated mobility, finance and parts and service brands.

Stellantis already has a well-established presence in three regions – Europe, North America and Latin America – in addition to significant untapped potential in important markets such as China, Africa, the Middle East, Oceania and India. With industrial operations in more than 30 countries, the Company has the ability to efficiently meet and exceed consumer expectations and deliver vehicles and services of unparalleled quality in more than 130 markets.

Stellantis starts from a position of considerable strength with robust operating margins reflecting the Company’s leading positions in North America, Europe and Latin America. Company expects to leverage its size and economies of scale as an enabler to invest in innovative mobility solutions for its customers, targeting annual synergies of more than €5 billion at a steady state. These synergy estimates will be achieved through the implementation of smart purchasing and investment strategies, optimizing powertrain and platform utilization, applying cutting-edge R&D and a continuous focus on manufacturing and tooling efficiencies. These synergy estimates are not based on any plant closures resulting from the transaction.

Nine Governance Committees will ensure an efficient operating structure from Day One, including company-wide performance & strategy, planning, regions, manufacturing, brand and styling.

Stellantis’ portfolio is uniquely suited to offer distinctive, sustainable mobility solutions to meet its customers’ evolving needs, as they embrace electrification, connectivity, autonomous driving and shared ownership.  As the electrified market continues to grow, Stellantis is well positioned today with 29 electrified models available and plans to introduce ten additional vehicles by the end of this year.

Company is strongly committed to playing an active part in contributing to the societies in which it operates, as it works towards achieving a long-term goal of carbon neutrality across all products, assembly plants and other facilities.

Marking the occasion John Elkann said: “It is no coincidence that Stellantis is born precisely when our world requires a new kind of automotive company that will champion clean and intelligent solutions to provide freedom of movement for all. Our global scale and reach provide us with the resources to invest in state-of-the-art technologies, distinctive excellence and unmatched choice for our customers. But it is the geographic and cultural diversity of Stellantis’ people that from Day One is our greatest competitive advantage. It is they, with their energy, their knowhow and their constant commitment who make Stellantis what it is today. And it is they who day-by-day will build an even greater company for this new era of mobility.” Commenting on the first day of Stellantis’ journey, Carlos Tavares said, “This is a great day. One year after we announced this project, Stellantis is born, notwithstanding the unprecedented societal and economic disruption caused by the COVID-19 pandemic. I want to warmly thank all of the teams who made this possible and also thank the entire workforce who continued to move our operations forward during this exceptional year. This demonstrates the agility, creativity and adaptability of our company which aims to be great rather than big, determined to be much more than the sum of its parts. It is also a further signal of the new company’s determination to be a leading player in the automotive industry in this ever changing environment. Stellantis is dedicated to “pursuing greatness” and enhancing the well-being of its employees.”

New company began trading yesterday, January 18, on Euronext (Paris) and the Borsa Italiana (Milan) and today on the New York Stock Exchange.

Full year 2020 results will be reported on March 3, 2021.

Groupe PSA remains profitable in H1 2020 despite Covid

• €25.1 billion Group revenue
• 3.7% Automotive division [1] adjusted operating margin [2] at €731 million
• Net result group share at €595 million
• €153 million Automotive positive free cash flow excluding working capital
• Strong financial security at €23.2 billion

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “This H1 result proves the Group’s resilience, as a reward of 6 consecutive years of intense work to increase our agility and lower our breakeven point. The Group is also weathering this crisis thanks to the commitment of the teams, focused to deliver a clean, safe and affordable mobility for our customers. We are determined to achieve solid rebound in the second half of the year, while finalizing the birth of Stellantis before the end of Q1 2021.”

Group revenue amounted to €25,120 million in H1 2020, down by 34.5% compared to H1 2019. Automotive division revenue amounted to €19,595 million down by 35.5% versus H1 2019, mainly driven by the negative impact of volumes and country mix (-40.5%), the decrease of sales to partners (-0.5%) and the impact of exchange rates (-0,6%) ; conversely, revenues benefited from the positive effect of product mix (+3.4%) and price (+0.4%), as well as others (+2.3%).

Group adjusted operating income [3] amounted to €517 million, down 84.5% with Automotive adjusted operating income down 72.5% at €731 million. This 3.7% profitability level was reached despite the sharp decline of automotive markets and thanks to a positive product mix and cost reductions.

Group adjusted operating margin reached 2.1%, down 6.6 pts versus H1 2019.

Other operating income and expenses amounted to -€35 million, compared to -€847 million in H1 2019.

Group net financial income and expenses improved to €52 million compared to -€166 million in H1 2019.

Consolidated net income reached €376 million, a decrease of €1,672 million compared to H1 2019. Net income, Group share, reached €595 million, down €1,237 million compared to H1 2019.

Banque PSA Finance reported adjusted operating income of €463 million [4], down 9.7%.

Faurecia adjusted operating income was a loss at -€159 million.

Free cash flow of manufacturing and sales companies was -€4,704 million of which -€3,601 million for the Automotive division.

Automotive free cash flow was positive at €153 million excluding working capital.

Total inventory, including independent dealers and importers [5], stood at 505,000 vehicles at 30 June 2020, down 24% compared to 30 June 2019.

Net financial position of manufacturing and sales companies was €2,886 million at 30 June 2020 of which €6,957 million for the Automotive division.

Market outlook: in 2020, the Group anticipates a decrease by 25% of the automotive market in Europe, by 30% in Russia and Latin America, and by 10% in China. 

Operational outlook: Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin [6] on average for the period 2019-2021.

[1] Automotive Division (PCDOV)

[2] Adjusted operating income related to revenue

[3] Adjusted operating income (loss) excludes from Operating income certain adjustments comprising Restructuring costs, Impairment of CGU’s and Other operating income (expense) considered rare or discrete events and are infrequent in nature.

[4] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

[5] Including Peugeot importers outside Europe

[6] Automotive Division (PCDOV) adjusted operating income related to revenue

Groupe PSA achieved a new profitability record in 2019

• €74.7 billion Group revenue up 1%
• 8.5% Group adjusted operating margin [1] at €6.3 billion
• 8.5% Automotive division [2] adjusted operating margin up 0.9 pt at €5.0 billion
• Record net result Group share at €3.2 billion
• €3.3 billion Automotive division free cash flow
• PACE! plan target achieved with Opel Vauxhall 6.5% adjusted operating margin

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “Our skilled and committed teams made the difference once again and we have achieved record results in 2019, driven by our agile, customer focused and socially responsible approach. We are ready for the energy transition and all teams are focused to offer a clean, safe and affordable mobility for customers. Based on our business model and fighting spirit which has proved to be efficient, we are eager to enter a new era with the projected merger with FCA.”

A dividend of €1.23 per share [3] will be submitted for approval at the next Shareholders’ Meeting.

Group revenue amounted to €74,731 million in 2019, up by 1.0% compared to 2018. Automotive division revenue amounted to €58,943 million up by 0.7% versus 2018, mainly driven by product mix (+4.3%) and price (+1.2%), which offset the decrease of sales to partners (-1.7%), the negative impact of exchange rates (-0.5%), volumes and country mix (-2.4%) as well as others (-0.2%).

Group adjusted operating income [4] amounted to €6,324 million, up 11.2% with Automotive adjusted operating income up 12.8% at €5,037 million. This 8.5% strong profitability level was reached thanks to a positive product mix and further cost reductions despite exchange rate headwinds and raw material costs increases.

Group adjusted operating margin reached 8.5%, up 0.8 pt versus 2018.

Other operating income and expenses amounted to -€1,656 million, compared to -€1,289 million in 2018.

Group net financial expenses decreased to -€344 million compared to -€446 million in 2018.

Consolidated net income reached €3,584 million, an increase of €289 million compared to 2018. Net income, Group share, reached €3,201 million, up €374 million compared to 2018.

Banque PSA Finance reported adjusted operating income of €1,012 million [5], up 7.8%.

Faurecia adjusted operating income was €1,227 million, down 2.9%.

Free cash flow of manufacturing and sales companies was €2,745 million of which €3,265 million for the Automotive division.

Total inventory, including independent dealers and importers [6], stood at 606,000 vehicles at 31 December 2019, down 74,000 vehicles compared to 31 December 2018.

Net financial position of manufacturing and sales companies was €7,914 million at 31 December 2019 after IFRS 16 effect and Clarion acquisition by Faurecia and including DFG share repurchase debt.

A dividend of €1.23 per share [7] will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 21 May 2020, and the payment date on 25 May 2020.

Market outlook: in 2020, the Group anticipates a decrease by 3% of the automotive market in Europe and by 2% in Russia as well as a stable automotive market in Latin America.

Operational outlook:

Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin [8] on average for the period 2019-2021.

[1] Adjusted operating income related to revenue

[2] Automotive Division (PCDOV)

[3] Dividend per share calculated on the basis of the total number of outstanding shares of the company minus the treasury shares of the company as of 25 February 2020. The actual dividend per share will depend on the number of treasury shares held at the ex-dividend date and any shares issued or cancelled prior to this date.

[4] Adjusted operating income (loss) excludes from Operating income certain adjustments comprising Restructuring costs, Impairment of CGU’s and Other operating income (expense) considered rare or discrete events and are infrequent in nature.

[5] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

[6] Including Peugeot importers outside Europe

[7] Dividend per share calculated on the basis of the total number of outstanding shares of the company minus the treasury shares of the company as of 25 February 2020. The actual dividend per share will depend on the number of treasury shares held at the ex-dividend date and any shares issued or cancelled prior to this date.

[8] Automotive Division (PCDOV) adjusted operating income related to revenue

Groupe PSA: Worldwide sales at 3.5M units in 2019

• Electrification on track: 10 [1] new models launched as a first milestone toward a 100% electrified range by 2025
• Solid position in Europe: 16.8% market share
• International businesses focused on profitable growth and manufacturing footprint development

“In all regions, our teams are driven by a strong commitment to performance, profitable sales and customer satisfaction in a highly changing environment. This commitment is supported by our Group’s core model and core technology strategies and, in the long term, feeds our ambition to provide clean, safe and affordable solutions for people and goods, to counter the global warming effect.” says Carlos Tavares, Chairman of the Groupe PSA Managing Board.

Becoming a major player in electrified mobility

Groupe PSA has already launched 10 new plug-in hybrid or all-electric models, in line with its roadmap to offer a 100% electrified [2] range from 2025, of which 50% will be electrified by the end of 2021 with 13 additional electrified models.

Since 2019, all new models launched by Groupe PSA come with either an all-electric or a plug-in hybrid powertrain. LEV orders are promising and in line with Group objectives to be compliant with European 2020 CO2 target from Day 1.

The company mobilizes its recognized expertise and works with its partners and dealers to meet customer expectations by producing and offering a competitive line-up, with easy and state-of-the-art services for day-to-day life.

Growing LCV sales

Groupe PSA has historically offered best-in-class products to cover the full diversity of customer needs. In 2019, the Group sold 765,000 units (of which 554,000 light commercial vehicles (LCVs) and 211 derivative passenger cars (PCs), and consolidated its position with a 25.1% market share in Europe [3], in particular driven by the successful renewal of its small and medium vans in the last three years.

The Peugeot Expert, Citroën Jumpy and Opel Vivaro will come in all‑electric versions from 2020 and the whole LCV range (and passenger car equivalents) electrified by 2021.

The Group’s LCV development is advancing at a good pace in Latin America, where the Group launched a comprehensive range of LCV products and services, and in Eurasia, with the Peugeot, Citroën and Opel medium van models.

Europe: focused on performance

Leveraging disciplined management to meet CO2 targets, the Group maintained its position by achieving a 16.8% market share in a market that was up a slight 1.3%, by growing in main markets, particularly in Italy (+0.5pt) and Spain (+0.2pt), and by maintaining its market share in France and the United Kingdom while slightly declining in Germany (-0.6pt).

2019 was a year of consolidation for Peugeot. The brand completely renewed its B segment offering to support its sales growth in 2020. The new electrified range, driven by the Peugeot e-208 and e-2008, as well as the plug-in hybrid versions of the Peugeot 3008 Hybrid and 508 Hybrid sedan & SW, are fully available for B2B and B2C customers and feature among the lowest CO2 emissions of the market.

Citroën had the strongest growth among the top 12 best-selling brands in Europe, increasing its market shares in the main markets. Its performance was notably driven by the C5 Aircross SUV, launched in January 2019, which will be available in a plug-in hybrid version in 2020.

DS Automobiles sales surged globally, especially in the second half of the year (+56%) driven by the success of its renewed range. In France, DS main market, the successful DS 7 CROSSBACK and DS 3 CROSSBACK models are now strongly positioned and the brand’s performance is being enhanced by the growing exclusive DS network, with 356 point of sales to date.

Opel Vauxhall focused its strategy on profitable sales channels and market segments. Through the consistent implementation of the core model strategy, Opel Vauxhall have taken steps toward ambitious future CO2 targets. The Grandland X (+29%) and Crossland X (+28%) SUVs and the LCVs (+20%) were particularly successful.

Middle East – Africa: market share increase in major markets

Groupe PSA’s market share increased by 0.4 pt in the region with registrations up 9,100 units compared to 2018, despite markets declining by 100,000 units [4]. Strong breakthroughs were made in Turkey (+2.1pts), Egypt (+6.1pts) and Morocco (+2.1pts). 2019 regional performance versus 2018 remained impacted by the wind down in Iran (May 2018) [5].

The production started mid-September 2019 in the Kenitra plant, in Morocco. The production capacity will be doubled to reach 200,000 vehicles as early as Mid-2020.

China & Southeast Asia: reshaping the business model

DPCA has set out its priorities in a six-year strategic plan presented last September, based on profitable sales, a lower breakeven point and a progressive increase in volumes for the Peugeot and Citroën brands. The DS brand is committed to the Chinese market and finalizes a new strategic plan. The sale of Groupe PSA shares in the CAPSA joint venture is part of this plan. 2020 will be the first year of Groupe PSA’s NEV offensive in China, with five NEV models to be launched and sold in China[6].

In ASEAN, the Group’s Malaysian hub NAM [7] started production with the Peugeot 3008 and 5008.

Latin America: contracting markets

Markets were hard hit in Argentina (-43%) and Chile (-11%) by the economic and political situations. Driven by the success of the new SUV C4 Cactus and the LCV offering, Groupe PSA sales remained brisk in Mexico (+13%), Brazil (+2%) and in smaller markets (Colombia, Cuba, Ecuador and Uruguay).

India-Pacific: sales growth in Japan

Sales grew slightly in the region despite declining markets. The recurring success in Japan continued with sales up 20%. Groupe PSA started the production of transmissions in India (Hosur plant), with its partner AVTEC Ltd (a CK Birla Group Co.) and is on track to launch the C5 Aircross SUV in India in 2020, to be followed in 2021 by new and disruptive Citroën models designed locally.

Eurasia: relaunch of the Opel brand

Sales increased in the region in H2 2019, especially in Ukraine and Russia. The Group improves faster than the market in Ukraine, thanks to all four brands. The Opel brand strengthened its presence in the Ukrainian market at the beginning of 2019 and the DS brand was launched in H2 2019.

Whereas the Russian market was down -2.3%, Group LCV sales increased with the Peugeot Traveller/Expert and the Citroën SpaceTourer/Jumpy. The Group recently relaunched the Opel brand in Russia, starting with the Zafira Life and Grandland X models.

[1] 4 BEV: DS 3 CROSSBACK E-TENSE, Peugeot e-208 and e-2008, Opel Corsa-e and 6 PHEV: Peugeot 3008 HYBRID, 508 HYBRID and 508 SW HYBRID, Citroën C5 Aircross Hybrid, Opel Grandland X Hybrid4, DS 7 CROSSBACK E-TENSE 4x4

BEV = Battery Electric Vehicle et PHEV = Plug in Hybrid Vehicle

[2] All-electric or plug-in hybrid

[3] LCV market share excluding PC versions

[4] Excl. Iran. Estimation at January 16th.

[5]Volumes manufactured in Iran have not been recorded in consolidated sales since May 1, 2018

[6] NEV = New Energy Vehicles / 2 BEV: Peugeot e-2008, DS 3 CROSSBACK E-TENSE and 3 PHEV: Peugeot 508L HYBRID and 4008 HYBRID, C5 Aircross Hybrid

[7] Naza Automotive Manufacturing

Groupe PSA and FCA plan to join forces to build world leader for new era in sustainable mobility

Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders. In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.

• Combination would create the 4th largest global OEM in terms of annual unit sales (8.7m vehicles)
• At its inception, the combined company would realize among the highest margins in the markets where it would operate, based on FCA’s strength in North America and Latin America and Groupe PSA’s in Europe
• Combination would unite the groups’ respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial – making them stronger together
• Merged entity would bring together the companies’ extensive and growing capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity
• Approximately €3.7 billion estimated annual run-rate synergies without any plant closures resulting from the transaction
• Highly respected combined management team recognised for exceptional value creation and with proven success in previous OEM combinations
• Dutch parent company Board would have balanced representation and a majority of independent Directors. John Elkann as Chairman and Carlos Tavares as CEO and member of the Board

Supervisory Board of Peugeot S.A. and the Board of Directors of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA). have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. Both boards have given the mandate to their respective teams to finalize the discussions to reach a binding Memorandum of Understanding in the coming weeks.

The plan to combine the Groupe PSA and FCA businesses follows intensive discussions between the senior managements of the two companies. Both share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility.

The proposed combination would create the 4th largest global OEM in terms of unit sales (8.7 million vehicles), with combined revenues of nearly €170 billion[1] and recurring operating profit of over €11 billion[2] on a simple aggregated basis of 2018 results excluding Magneti Marelli and Faurecia. The significant value accretion resulting from the transaction is estimated to be approximately €3.7 billion in annual run-rate synergies derived principally from a more efficient allocation of resources for large-scale investments in vehicle platforms, powertrain and technology and from the enhanced purchasing capability inherent in the combined group’s new scale. These synergy estimates are not based on any plant closures.

It is projected that 80% of the synergies would be achieved after 4 years. The total one-time cost of achieving the synergies is estimated at €2.8 billion.

The shareholders of each company would own 50% of the equity of the newly combined group and would therefore share equally in the benefits arising from the combination. The transaction would be affected by way of a merger under a Dutch parent company and the governance structure of the new company would be balanced between the contributing shareholders, with the majority of the directors being independent. The Board would be composed of 11 members. Five Board members would be nominated by FCA (including John Elkann as Chairman) and five would be nominated by Groupe PSA (including the Senior Independent Director and the Vice Chairman)[3]. The Chief Executive Officer would be Carlos Tavares for an initial term of five years and he would also be a member of the Board.

Carlos Tavares said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”

Mike Manley said, "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."

The new group’s Dutch-domiciled parent company would be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange and would continue to maintain significant presences in the current operating head-office locations in France, Italy and the US.

It is proposed that the by-laws of the new combined company would provide that the loyalty voting program will not operate to grant voting rights to any single shareholder in the Shareholders Meeting exceeding 30%[4] of the total votes cast. It is also foreseen that there would be no carry over of existing double voting rights but that new double voting rights would accrue after a three-year holding period after completion of the merger.

A standstill in respect of the shareholdings of EXOR N.V., Bpifrance Participations SA, DFG and the Peugeot Family would apply for a period of 7 years following completion of the merger. EXOR, Bpifrance Participations and the Peugeot Family would be subject to a 3-year lock-up in respect of their shareholdings except that the Peugeot Family would be permitted to increase its shareholding by up to 2.5% during the first 3 years following the closing, only by acquiring shares from Bpifrance Participations and DFG.

Prior to the completion of the transaction, FCA would distribute to its shareholders a special dividend of €5.5 billion, as well as its shareholding in Comau. In addition, prior to completion, Peugeot would distribute to its shareholders its 46% stake in Faurecia. This would enable the combined groups’ shareholders to equally share in the synergies and benefits that would flow from a merger while recognizing the significant value of FCA’s differentiated platform in North America and strong position in Latin America, including its market-leading margins in those regions. It would also reflect the added value that FCA’s higher-end global brands Alfa Romeo and Maserati would bring given their substantial development potential.

Extended portfolio would cover all market segments with iconic brands and strong products based on rationalized platforms and optimization of investments.

Proposal would be submitted to the information and consultation process of the relevant employee bodies, and would be subject to customary closing conditions, including final board approvals of the binding Memorandum of Understanding and agreement on definitive documentation.

Groupe PSA achieves strong profitability in H1 2019

• €38.3 billion Group revenue
• 8.7% Automotive division [1] recurring operating margin [2]
• 8.7% Group recurring operating margin
• €1.599 billion Group [3] free cash flow [4] including the acquisition of Clarion by Faurecia
• €2.287 billion Automotive division free cash flow

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “Thanks to our focus on our strategic plan execution, we have delivered strong Free Cash Flow and Recurring Operating Margin in H1. We are ready for electrification and to embrace the next technological challenges. Our agility and aligned management team remain key assets to reach the targets of the Push to Pass plan.”

Group revenue amounted to €38,340 million in the first half of 2019, down by 0.7% compared to 2018 H1. Automotive division revenue amounted to €30,378 million down by 1.1% versus 2018 H1, mainly driven by product mix (+2.9%) and price (+1.3%), which partially offset the decrease of sales to partners (-2.2%), the negative impact of exchange rates (-0.8%), volumes and country mix (-1.4%) as well as others (-0.9%).

Group recurring operating income amounted to €3,338 million, up 10.6% with Automotive recurring operating income up 12.6% at €2,657 million. This 8.7% strong profitability level was reached thanks to a positive product mix and further cost reductions, despite exchange rate headwinds.

Group recurring operating margin reached 8.7%, up 0.9 pt versus 2018 H1.

Group non-recurring operating income and expenses amounted to -€847 million, compared to -€750 million in 2018 H1.

Group net financial expenses decreased to -€166 million compared to -€218 million in 2018 H1.

Consolidated net income reached €2,048 million, an increase of €335 million compared to 2018 H1. Net income, Group share, reached €1,832 million, up €351 million compared to 2018 H1.

Banque PSA Finance reported recurring operating income of €513 million[5], up 0.6%.

Faurecia recurring operating income was €634 million, down 1.2%.

The free cash flow of manufacturing and sales companies was €1,599 million of which €2,287 million for the Automotive division.

Total inventory, including independent dealers and importers [6], stood at 659,000 vehicles at 30 June 2019, at the same level as 30 June 2018.

The net financial position of manufacturing and sales companies was €7,906 million at 30 June 2019 after IFRS 16 effect and Clarion acquisition by Faurecia.

Market outlook: in 2019, the Group anticipates a decrease by 1% of the automotive market in Europe, by 4% in Latin America and by 7% in China and growth of 3% in Russia.

Operational outlook:

Groupe PSA has set the target to deliver over 4.5% Automotive recurring operating margin [7] on average for the period 2019-2021.

[1] Automotive Division (PCDOV)

[2] Recurring operating income related to revenue

[3] Sales and manufacturing companies

[4] Free Cash Flow = Cash flow + restructuring + change in working capital requirement + capex and capitalized R&D

[5] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

[6] Including Peugeot importers outside Europe

[7] Automotive Division (PCDOV) recurring operating income related to revenue

Groupe PSA: Worldwide sales at 1.9M units in the first half of 2019

• Strengthened position in Europe with an increased market share of +0.3pt
• Start of production at the Kenitra [1] plant to support commercial offensive in Middle East & Africa
• Ongoing electrification on the launch pad with 9 [2] electrified models

Despite the decline of the global automotive markets for this first half, our commercial teams have managed to increase market shares in several countries, especially in Europe and Africa. Rigorous deployment of our Core Model and Core Techno strategies is decisive asset to manage profitable sales and enhance customer satisfaction.» says Carlos Tavares, Chairman of the Groupe PSA Managing Board.

Electrification offensive is mastered with the aim to have a 100% electrified [3] range from 2025

All-electric: New Opel Corsa-e 

Groupe PSA aims to be a major player in electrified mobility with all new models coming in a hybrid plug-in or an all-electric version : DS 3 CROSSBACK E-TENSE, Peugeot e-208 and e-2008 and Opel Corsa-e in 100% electric version, and DS 7 CROSSBACK E-TENSE 4X4, Peugeot 3008 HYbrid & HYbrid4, Peugeot 508 & 508 SW HYbrid, Opel Grandland X Hybrid4 and Citroën C5 Aircross SUV Hybrid in hybrid plug-in version.

New Opel Grandland X Hybrid4

Groupe PSA is also preparing a full electrified LCV range by 2025, starting with Citroën Berlingo and Peugeot Partner, already available in an electric version. New electrified generation of these vehicles for Peugeot, Citroën and Opel/Vauxhall will be available by 2021. Group presented last April a preview of the electrified versions of Peugeot Boxer and Citroën Jumper at the Birmingham Commercial Vehicle Show. It also announced an electrified version for 2020 in the medium van segment.

Fourteen new electrified vehicles will be launched in just two years.

Europe: profitable growth

In a declining market over the first half year (-2.4%), the Group strengthened its position by achieving a 17.4% market share, growing in all main markets, particularly in Italy (+1.1pts), France (+0.7pt), the United Kingdom (+0.2pt), Germany (+0.1pt), and Spain (+0.1pt).

Performance is driven by the excellent results of Citroën, which has achieved an eight-year sales record with the strongest growth within the Top 12 brands. As a result, the brand has gained 0.3 point in market share in Europe, thanks in particular to the success of its SUV range (C5 Aircross and C3 Aircross).

Opel / Vauxhall has continued its development since last autumn and grew slightly its market share. This market share grew among other markets in France (0.2 pt), UK (+0.2 pt) and Italy (+0.7 pt), while the brand at the same time kept its focus on the deployment of profitable sales. Combo, Crossland X, Grandland X carry most of this performance and Opel / Vauxhall will benefit from the launch of the new Corsa in the second half of the year.

Peugeot market share is stable in Europe. Beyond the continuous success of its SUVs 3008/5008, Peugeot is also progressing well thanks to the award-winning 508 family with the launch of the new 508 SW: 508 sedan is 1st in France since its launch. Peugeot also beats its previous LCV sales record in the 1st semester.

DS Automobiles confirms the brand's sustainable growth (+1.7% vs 2018 H1, and +16% in Q2 vs 2018 Q2) with DS 7 CROSSBACK - leader in SUV Premium in France during the first half - and DS 3 CROSSBACK, launched in May in France and number 1 in terms of registrations of premium SUVs in June in France.

Groupe PSA is also maintaining its leadership in LCVs with a 24.7% market share.

Middle East – Africa: operational industrial footprint

Groupe PSA market share increased in its main markets: Morocco (+4.7pts), Egypt (+3.5pts), Algeria (+2.7pts) and Turkey (+0.5pt). The evolution of sales is impacted by the wind down from Iran [4] and the Turkish market (-44.8%) downturn.

With the start of production at the Kenitra plant in Morocco, the Group will be able to produce models that meet customers’ expectations and achieve its commercial ambitions in the region.

China & South East Asia: improving business model in China

In a declining Chinese market, sales are down 62.1%. DS maintained its market shares. The Group is working on action plans with its partners to tackle current issues and lower the breakeven point of the JVs.

Electric offensive is underway with the launch of Peugeot 508L PHEV, as well as BEV Peugeot 2008 and DS 3 CROSSBACK in 2020.

Exports from the Malaysian hub NAM [5] are now starting for Peugeot 3008 and 5008

Latin America: headwinds in Argentina

Group sales have decreased by 29.3% in Latin America with a strong hit of Argentinean market downturn (-50.3%). However, the group stabilized its market share in Brazil driven by the success of the SUV C4 Cactus and the LCV offensive. It has maintained its position in Chile and improved in Mexico in decreasing markets. Opel made a strong progress in the region increasing its market share.

Some encouraging trend results from the success of SUV models and recent launches: Citroën C5 Aircross and Peugeot 2008 and completed by Citroën C4, Peugeot Rifter and soon DS 3 CROSSBACK. LCV offensive is also ongoing with the recent launches of the new Peugeot Partner, Citroën Berlingo and Opel Combo.

India-Pacific: sales growth (+2.3%)

Recurring success of the Group in Japan continues with sales up 16%. Groupe PSA achieved another milestone by announcing in April the launch of the Citroën brand in India and starting the production of gearboxes (Hosur plant) with its partner AVTEC Ltd (a CK Birla Group Co.).

Eurasia: prepare the relaunch of the Opel brand

New Opel Zafira Life

Facing a downward trend of the Russian market (-2.4%), Groupe PSA market share is slightly declining (-0.2pt). Group is launching DS Automobiles in Ukraine with the first DS Store to open in July. Group is also preparing the relaunch of the Opel brand in Russia starting with the Zafira Life and the Grandland X, first models to be available in few months.

Opel Grandland X

[1] In Morocco

[2] 4 BEV : DS 3 CROSSBACK E-TENSE + e-208 + e-2008 + Corsa-e and 5 PHEV : 3008 HYbrid & HYbrid4 + 508 & 508 SW HYbrid + Grandland Hybrid4 + DS 7 CROSSBACK E-TENSE 4x4 + Citroën C5 Aircross SUV Hybrid

[3] Full Electric or plug-in hybrid

[4]Volumes industrialized in Iran are no longer recorded in consolidated sales since May 1st 2018

[5] Naza Automotive Manufacturing

Groupe PSA: Q3 2018 Revenue +7.8% growth

• Groupe PSA Q3 revenue at €15.4 billion^[1] and YTD revenue up 29.1% at €54 billion;
• Peugeot Citroën DS (PCD) Automotive division revenue up 0.8%:
  • Strong market share increase in Europe: +0.7 pt [2];
  • Negative impact of exchange rates especially in Argentina, Brazil and Turkey;
• Opel Vauxhall (OV) Automotive division revenue amounted to €3.9 billion;
• Consolidated worldwide sales down 16.7% mainly because of the suspension of the group’s activities in Iran. In Europe, sales up 8.1%.

Group Q3 2018 revenue amounted to €15,428 million, compared with €14,309 million in Q3 2017. At constant 2015 exchange rate and perimeter, 2018 Group revenue was up 21.6% [3].

PCD Automotive division revenue amounted to €8,485 million up by 0.8% compared to Q3 2017. The positive impact of product mix (+2.2%), sales to partners (+1.4%), price (+1.5%) and others (+0.9%) more than compensated the negative impact of exchange rates (-2.3%) and volumes (-2.9%).

OV Automotive division revenue amounted to €3,877 million in Q3 2018, compared with €2,789 million in Q3 2017¹.

With a total of 703,000 cars sold, Q3 2018 consolidated worldwide sales were up in Europe but down outside of Europe mainly because of the suspension of the group’s activities in Iran from May.

Total PCD inventory, including independent dealers, stood at 402,000 vehicles [4] at the end of September 2018, up 33,000 units compared to end of September 2017. OV inventory, including independent dealers, totalled 173,000 vehicles at the end of September 2018 down 64,000 units compared to end of September 2017.

Philippe de Rovira, Chief Financial Officer of Groupe PSA and member of the Executive Committee, said: « The execution of Push to Pass strategic plan and PACE! Opel Vauxhall turnaround plan is again proving to be a strong lever to deliver a sustainable performance despite an adverse environment. »

Market outlook: in 2018, the Group anticipates a growth of 2% of the automotive market in Europe, 3% in Latin America, 10% in Russia and 1% in China.

Operational targets

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

• Deliver over 4.5% Automotive recurring operating margin [5] on average in 2016-2018, and target over 6% by 2021;

• Deliver 10% Group revenue growth by 2018 [6] vs 2015, and target additional 15% by 2021.

[1] Groupe PSA revenue includes Opel Vauxhall (OV) since August 1^st 2017; It does not include the impact of hyperinflation in Argentina following IAS29. The estimation of this impact is in progress.

[2] PCD market share, Q3 2018 vs Q3 2017

[3] As of 30 September 2018, growth at constant exchange rates (2015) and perimeter (excluding OV) versus revenue as of 30 September 2015.

[4] Excluding JV in China and Iran, including independent dealers

 [5]  Recurring operating income related to revenue

 [6]   At constant (2015) exchange rates and perimeter (excluding OV)