| Jean-Martin Folz has good reason
to be pleased. In the past five years the CEO of PSA Peugeot Citroen has
seen his company increase its market share in Europe by more than four
per cent. But boosting ones presence in the toughest market of all is
not nearly enough for the Frenchman. Far from it, under his guidance,
Folz wants to usher the PSA group onto bigger and better things, and as
Folz has shown over his career, what Folz wants Folz tends to get.
Jean-Martin Folz, PSA CEO, points to the further development of diesel technology as being the key to future PSA growth; and (below) the new Euro 4 2.0 litre HDi unit that enhances today's PSA diesel range |
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“Our market share gains have been led by an extensive product
plan supported by highly efficient technology,” commented Folz on
PSA’s growth in Europe at a recent industry forum. Advanced technology
such as acclaimed diesel powertrains, the development of the particulate
filter, gasoline units and a shared platform strategy between Peugeot
and Citroen have been key to PSA’s expansion. But that, according
to Folz, is only the start of things to come.
The PSA top man has openly set-down the foundations of a technological
powertrain focused strategic programme that should – if all goes
to plan – ensure further PSA growth in Europe for the next four-years.
“Looking forward to 2006, the PSA Peugeot Citroen group has decided
to innovate in four areas of powertrain technology,” Folz announced.
More diesels and more particulate filters
Crucial to the future growth of PSA is an even stronger foundation for
its diesel technology line-up, with the further development of HDi diesel
engines being PSA’s “main objective” for the next four-years.
Said Folz: “Our goal for 2006 is to have sold a total of 8.5 million
cars equipped with HDi engines. But in years ahead, we have decided to
focus specifically on engines that emit less than 120 grams of CO2 per
kilometre.”
| At the end of last year PSA managed to shift 190,000 vehicles –
Peugeot 206, 307 and Citroen C3 – that fell into such a diesel/CO2
category. Folz now expects more, much more, as he said: “We
intend to increase this figure by nine [models], to a total of 1.7
million vehicles with emissions of less than 120 grams of CO2 per
kilometre by 2006.” |
It’s a steep hill to climb, but one senses that if any carmaker
could achieve such a goal then PSA – the global diesel specialists
– could accomplish such a target. Folz points to the current range
of HDi engines as being a case in point.
“Only five years after their launch, the HDi direct-injection diesel
engines have become a European benchmark for their efficiency, low emissions
and driving comfort. We have already produced some four million engines
and output is accelerating,” said Folz.
Adding further weight to Folz’s PSA diesel vision is the joint co-operative
diesel development agreement with Ford that enables PSA to increase output
to more than 10,000 engines a day to meet both carmakers needs.
Further supporting PSA’s commitment to diesel engines is the development
of the particulate filter, which when announced in 1998 and launched in
2000, propelled PSA into a diesel class of its own. Last June PSA announced
it had sold 500,000 vehicles equipped with a particulate filter system,
but Folz now hopes to more than treble such sales by 2006.
“Our strategy in this area is not to apply it systematically, but
focus on equipping as many vehicles with mid-sized and large engines as
possible,” said the Folz. “We will soon have reached the one
million mark for vehicles with particulate filters, and our goal now is
to equip more than 1.7 million by 2006.”
The particulate filter is a development close to Folz’s heart, with
the CEO commenting that PSA has “mastered” such a crucial
technology that not only meets Euro 4 standards, but is also environmentally
and user friendly, as well as being an ever evolving technology.
He added: “This technology is continually improving, now that servicing
is recommended once every 120,000 kilometres instead of every 80,000 kilometres.
In 2004, we will introduce a particulate filter requiring no servicing
developed through our co-operation with Ford.”
All go with stop-and-start
As well as enhancing on traditional PSA stronghold areas such as diesel
technology, Folz also wants to see the French carmaking group build bridges
in automotive areas that remain uncharted, such as the development of
accessible hybrid vehicles.
Yet Folz warns PSA must first learn to walk in the hybrid sphere before
it can think about running forward with such a technology. “In the
area of hybrid vehicles, our strategy is again very pragmatic,”
he said with caution. “It is based on the observation that, because
of its unacceptable cost/benefit ratio, a true hybrid vehicle with two
engines, capable of operating in ZEV mode, can not be made widely accessible
in the short term.”
Folz says in the realm of stop-and-start technology, the first stage in
hybridisation is to provide the market with “a rapidly available
solution that offers the best possible cost/benefit ratio.”
For Folz, there is a solid case in developing a line of stop-and-start
powertrains. The technology integrates a low-power, electronically controlled
starter/generator that allows the engine to shut down automatically when
the vehicle is standing still and in neutral – such as at red lights
and in traffic jams – with the engine then starting-up again by
instantly responding at the first touch from the driver.
Depending on the type of engine, the innovative system results in a five
to eight per cent reduction in fuel consumption and in CO2 emissions,
as well as also offering a substantial reduction in noise pollution.
| Analysis carried out by the PSA group has persuaded Folz that this
is a technology worth pursuing, with PSA possibly reaping huge rewards
in four-years time as a result of today’s calculated strategy.
Folz commented: “Tests conducted in the Paris area showed that
cars are at a standstill for 35 per cent of the driving time, a figure
that supports the deployment of stop-and-start technology.” |
As a result of Folz’s vision in stop-and-start, PSA will begin
next year to fit vehicles with stop-and-start systems, a first in Europe.
“We forecast that more than 50,000 Peugeot and Citroen vehicles
will be equipped by the end of 2006.
“Looking into the future, our confidence in the development potential
of this innovation is based on the driving pleasure and fuel efficiency
it offers, especially in cities. We therefore expect substantial growth,
particularly after 2008,” he added.
Not ignoring gasoline
Folz’s grand-plan for future PSA growth might focus on diesel and
stop-and-start technology, but the CEO is eager to not under-estimate
the importance of gasoline units.
Only earlier this year the PSA top man was standing with his BMW counterpart
at a press conference confirming the two carmakers were to embark on a
joint-collaboration gasoline engine development project. Code-named EP,
the engines will be introduced in 2006 and be produced at a rate of one
million units per year to meet both carmakers’ needs.
On the issue of gasoline engine development, Folz said: “With our
partner [BMW], we are exploring various innovative solutions that take
a new approach to such technologies as direct injection and supercharging.
This will enables us to improve engine features, once again with a focus
on reducing fuel consumption and related CO2 emissions, while also offering
outstanding performance.”
It is thought that the PSA group is investing around €430 million
($485 million) in new facilities in Douvrin, France, as a result of the
joint venture, with the plant eventually having the capacity to make 2,500
engines a day and will employ 850 people at full capacity.
Innovative gearboxes
Somewhat surprisingly, setting new boundaries in gearbox development,
such as today’s SensoDrive that currently graces the Citroen C3,
is also key to Folz’s PSA four-year growth plan.
Folz explained: “Although this is not as well known as our commitment
to diesel engines, our objective in the area of electronically controlled
gear boxes is just as important.
| “Our initial goal is to produce 650,000 vehicles equipped
with this function by the end of 2006, when we will really ramp up
production.” |
Alongside SensoDrive, Folz promises that in 2005 PSA will introduce
a brand new, electrically controlled six-speed compact gearbox capable
of operating in both manual and automatic modes, with the electronic management
of clutch and gearshift functions not only providing enhanced road performance
but also offering lower fuel consumption.
Folz continued: “This gearbox will gradually be fitted on gasoline
and diesel versions of mid-range Peugeot and Citroen vehicles, with production
exceeding 400,000 units a year.”
Folz’s strategic plan is ambitious, but then Folz is an ambitious
man with something for the number four. Whether he knew it or not, Folz’s
proposed growth for PSA is entangled with four: Four key areas that should
build throughout the next four years on the four per cent gain PSA has
already made. For Folz and PSA, tomorrow’s breakthroughs are already
being discussed today.
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