NAZA Automotive Manufacturing, the assembly plant previously set up by the NAZA Group and then taken over by the Groupe PSA has now been acquired by Stellantis, the new company created out of the merger between the French Groupe PSA and the FCA Group in January this year. Stellantis obtained full ownership of the 17-year old plant, located in Gurun, Kedah, at the end of October.
The completed acquisition marks a significant milestone for Stellantis in southeast Asia as it has plans to invest and expand its footprint as part of a localisation strategy. “We have an ambitious growth strategy that will enable us to build on the existing production outputs in Gurun, as well as extend the breadth of brands and models within the Stellantis portfolio built in ASEAN for ASEAN. This is a very exciting proposition,” said Christophe Musy, Stellantis’ Senior Vice-President, ASEAN & General Distributors.
File photo of NAM in 2015.
“Stellantis is deeply committed to growing our presence in ASEAN, and taking full ownership and responsibility of the plant in Gurun, Kedah is a very important step towards strengthening our operations, production outputs and workforce in the region,” he added.
Updated versions of the Peugeot 3008 and 5008 are now rolling out after operations resumed recently. The SUVs are for the Malaysian market as well as for export to neighbouring countries.
Operations at the plant were suspended for over 2 months as part of the government’s effort to fight the COVID-19 pandemic, and have resumed recently. Assembly of the updated Peugeot 3008 and 5008 have been rolling out at pre-pandemic production rates, with volumes now ramping up for the remainder of 2021.
Both models are supplied to Malaysia, Thailand, the Philippines and other ASEAN markets. In the near future, the locally-assembled range will be joined by the 2008, Mr. Musy revealed. He added that, in Malaysia, they are now working with their new sold distributor, Berjaya Auto Alliance Sdn Bhd (BAASB), which was appointed last December.
The next Peugeot model to be assembled in Malaysia will be the new 2008.
“We are focused on our mission to achieve world-class manufacturing in Gurun, to build high-quality, Malaysian-produced vehicles for southeast Asia. We are working closely with our partners to increase plant capacity by almost 40% to meet demand and this, combined with our strong product plan and determination to achieve the highest standards in quality and safety, has set us up for great success in Malaysia,” he said.
In the late 1990s, Chrysler and Daimler merged (at least that’s what the German side called the union, although it was not really so) and created a ‘mega corporation’ in the auto industry. The move had a significant impact on the industry, beginning a rush of consolidations as companies realised that big numbers were vital for survival.
But within just 3 years of the creation of DaimlerChrysler, Chrysler was losing US$3 billion each year and cultural differences didn’t help in the trans-Atlantic marriage either. The Daimler people felt that their way was best for corporate culture, and of course, that created friction. In the end, the two sides parted company in 2007 and Chrysler rebuilt itself.
7 years later, Chrysler again ‘re-married’, and again, it was a European partner – the Fiat Group. The merger created the FCA Group with all the brands from Fiat (except Ferrari) coming together with Chrysler’s Dodge, Chrysler, Jeep and Ram Trucks brands.
Merger negotiations began in 2019
Though operating more globally then if Chrysler stayed single, FCA still faced strong competition and in 2019, FCA announced that it would merge with Groupe PSA on a 50:50 basis. With the need to gain approval from regulators and then the restrictions caused by the pandemic, the completion of the merger took a while and has finally taken place.
The merged entity is known as Stellantis, which we are told comes from the Latin word ‘stello’, and means ‘to brighten with stars’. The name will be used exclusively at the group level as a corporate brand, while the individual companies will continue to use their existing brands.
The company’s total workforce of 400,000 employees will be managed by an 11-member Board of Directors that has the grandson of Giovanni Agnelli (who headed Fiat from 1966 – 2003) as Chairman, John P.J. Elkann. The one who will run the show will be CEO Carlos Tavares, who has been heading Groupe PSA. Like Toyota’s Akio Toyoda, Tavares, who worked with Carlos Ghosn in the Renault-Nissan Alliance, is also a racing driver.
Carlos Tavares, the CEO of the new company, is a real car-guy and like Akio Toyoda, he also goes racing!
Auto industry pioneers in group
Stellantis will leverage the strengths of the two groups to design, develop, manufacture, distribute and sell vehicles and mobility solutions around the world. Both companies have roots that go back to the early days of the auto industry; Dodge started in 1900 while Peugeot produced its first car in 1889. So there is a long heritage to boast of, which may or may not prove useful in this age of ‘disruptors’ coming into the industry.
The number of brands is certainly quite extensive with Groupe PSA having brands like Peugeot, Citroen, Opel, Vauxhall (and might have had Proton too but Geely won the pitch instead). It’s the second time that PSA is involved with Chrysler as back in the late 1970s, it bought over Chrysler Europe for US$1 + debts.
FCA and Groupe PSA have a combined portfolio of many brands that cover virtually every segment of the global market.
The brands in Stellantis cover the full spectrum of market segments from luxury, premium and mainstream passenger vehicles to pick-up trucks, SUVs and light commercial vehicles. As with most of the major carmakers, there are also mobility, finance and parts and service brands.
Global reach and synergies
Stellantis sees itself as starting from a position of considerable strength, claiming leading positions in North America, Europe and Latin America. It expects synergies to be the key to growth and further success. Besides a well-established presence in Europe, North America and Latin America through different brands, it aims to tap potential markets such as China, Africa, the Middle East, Oceania and India. By the end of 2021, it plans to have at least 39 electrified vehicles available in its range.
The group will have at least 39 electrified models by the end of next year.
Commenting on the Stellantis’ journey ahead, Tavares said: “One year after we announced this project, Stellantis is born, notwithstanding the unprecedented societal and economic disruption caused by the COVID-19 pandemic. 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.”
Mercedes-Benz has Mercedes-AMG, BMW has BMW M and now Peugeot has also created its own high-performance division known as PEUGEOT SPORT ENGINEERED. Coinciding with the launch of this new division, the carmaker is announcing its return to the World Endurance Championship in the Le Mans Hypercar category from 2022, although that has already been known earlier.
Roots in Peugeot Sport
PEUGEOT SPORT ENGINEERED is probably an evolution of the Peugeot Sport division within the original Peugeot PSA Citroen group. It was established in 1981 as a motorsports division and gained fame when it developed and ran the Group B Peugeot 205 Turbo 16 in the 1984 World Rally Championship. Since then, Peugeot Sport has been involved in F1 and WEC as well.
The Group B 205 Turbo 16 was one of the legendary rallycars developed by Peugeot Sport in the 1980s.
Two new models
Now, as PEUGEOT SPORT ENGINEERED, the division appears to also be given an additional role in developing high-performance versions of Peugeot models for a more business-orientated approach. The first of these is the latest 508 with AWD and plug-in hybrid electric technology to enter the new era in which the kilowatt is king.
The new 508 PEUGEOT SPORT ENGINEERED will be available in Fastback and Stationwagon bodystyles. The signature of this new family, with three Kryptonite claws, refers to the new identity for Peugeot Sport, to the light signatures of the production models, and draws inspiration from the brand’s heritage with rear lights inspired by the 504 Coupe.
The new 508 PEUGEOT SPORT ENGINEERED is the most powerful production car ever built by Peugeot for sale. The powertrain produces 360 bhp/520 Nm, thanks to the combination of internal combustion engine and two electrical motors (one at the front and the other at the rear). Claimed 0 to 100 km/h acceleration is 5.2 seconds, with a top speed beyond 250 km/h but electronically limited to that speed.
The driver can select from 5 driving modes to suit conditions and preference: 100% electric driving; Comfort; Hybrid; Sport and 4WD. Recharging can be done within 7 hours at home or within 2 hours using a dedicated 7 kW wallbox charging point.
Optimised for high performance
The engineers have made changes to the 508 to optimise the high-performance version for sportier dynamics. The adjustments to its chassis include a specially-tuned steering set-up. The front and rear tracks are wider and there’s variable 3-mode shock absorption. 380 mm diameter front brake discs and fixed 4-piston calipers are installed behind 20-inch alloy wheels running on Michelin Pilot Sport 4S tyres. The driving position has also been lowered.
PEUGEOT SPORT ENGINEERED has drawn on expertise gained during the development of the 3008 SUV HYBRID/HYBRID4 and 508 HYBRID, as well as experience from competing with hybrid powertrains.
At Geneva in 2010, Peugeot displayed the SR1 concept car which represented a new era at Peugeot Design. A new head of design and team had come up with new styling concepts and among them was the i-Cockpit. This was an innovation in dashboard design which met with positive response, leading Peugeot to introduce it in production models within 2 years.
The first model to have the i-Cockpit was the 208 in 2012, giving the popular hatchback a new iconic feature that would become an element in the brand’s DNA. With the i-Cockpit, key information is directly within the driver’s line of sight, reducing the need to take the eyes off the road.
It’s almost like the Head-Up Display (HUD) except that it does not project information on the windscreen ahead of the driver. It is therefore not as expensive to incorporate but at the same time differs from traditional instrument panel layout and positioning.
Why does it work better?
To design the i-Cockpit, ergonomics, visibility and architecture must be taken into account, ensuring all body types are comfortable with maximum outward visibility. To achieve this, anthropometric data was studied on a global scale. It isn’t just the driver’s height that matters; their chest to leg ratio that needs to be assessed. For example, some people have a longer torso compared to their leg length. But for others, it’s quite the opposite. If the average height of a man is 1.76 metres, the length of his torso varies from 87 to 98 cm. This has a direct impact on the positioning of his vision.
This anthropometric data made it possible to calculate the range of adjustment for the seats or steering wheel. This reinforces the feeling of being in a ‘cocoon’ and optimises ergonomics, whatever the driver’s size.
Elements of the i-Cockpit
The main elements of the i-Cockpit are the compact steering wheel, raised instrument display, large HD touchscreen in line of sight, and a series of piano keys (or toggle switches) allowing direct and permanent access to the main comfort functions.
The i-Cockpit uses a 3-level arrangement for efficient ergonomics and driving comfort. Like a HUD, the information falls within the driver’s line of sight so that he or she does not need to take their eyes off the road ahead, improving safety. With traditional layouts, the eyes usually have to be diverted downwards a bit to view the meters, momentarily drawing the driver’s vision away from the road.
An unusual feature on the tachometer is the way it sweeps around the face. In conventional meters, the sweep would be clockwise, from the lower left around to the right. For the i-Cockpit, the sweep is counter-clockwise so the pointer rests on the right side when at idle. The designers were perhaps obsessed with having symmetry in the motion, with the speedometer (on the left side) sweeping clockwise. It’s disconcerting for new drivers but something that an owner would get used to.
The cockpit ergonomics are also part of the i-Cockpit with a wraparound layout to put switches and knobs within easy reach. The steering wheel has paddles which allow manual selection of gears, if preferred, without removing the hands from the steering wheel.
The 3D cluster
To date, over 5 million motorists have the i-Cockpit in their Peugeot vehicles. The concept continues to evolve and the latest innovation is the 3D i-Cockpit instrument cluster offered in the latest 208 which is the 2020 European Car of the Year. Visteon Corporation collaborated with Peugeot in the development of the more advanced i-Cockpit, said to be the industry’s first fully digital cluster displaying holographic objects. The instrument cluster represents the first real 3D cluster in automotive production.
The digital cluster displays advanced reflections to create the impressions of 3D graphics. The cluster is composed of a high-definition 10.25-inch ‘background’ thin-film transistor (TFT) and a 7-inch ‘foreground’ TFT projected on a semi-reflective blade.
The leading-edge display creates a 3D projection of approximately 15 mm between the front and rear images. This projects information like a hologram and the information is dynamic and animated. It can get closer to the eye depending on the degree of importance or urgency, and potentially increasing driver reactivity by half a second.
The 3D cluster is the first of several variants in the Groupe PSA brand line-up that will be launched over the coming years in a number of sizes. Identifiable by the two TFTs surrounded by tell-tale satellites, it also provides high-quality graphical content with animations and 3D content on both screens, in a complex and calibrated mechanical structure.
The new company formed by the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group will see 14 brands – mainly European – coming under one group. That’s a lot of brands to manage and in an age when economies of scale are paramount, there’s the big question mark of whether some brands will be discontinued. Or if they are retained, will they lose their uniqueness and be just badge-engineered products that are needed for certain regions where the brand has been popular?
Carlos Tavares (currently PSA’s chief), who will be the CEO of the new combined company, has said that no brand will be axed while acknowledging that it will be a challenge to manage so many brands. But these are early days and the new company has not even started business; once the new management starts to look at the numbers and formulates long-term plans, it may be necessary to make the hard decisions and cut off some brands that just cannot deliver revenues.
A struggle to be kept in existence
One brand that many worry about is Alfa Romeo. The sporty Italian brand has a history spanning over 100 years and has a strong following of alfisti all over the world. Fiat acquired it in 1986 but struggled to get it to make money for the past 20 years. When former FCA CEO Sergio Marchionne was alive, he tried to boost the brand but three efforts still failed. His successor, Mike Manley, was less sentimental about the brand and had announced decreased investments for it.
There is a glimmer of hope for Alfa Romeo though, simply because 61-year old Tavares is a true car guy. His first job after university was as a test driver at Renault and apart from a strong personal interest in cars, he also goes racing on many weekends (though that may have to be sacrificed in future). So while he is also known as a cost-cutter like his former boss (Carlos Ghosn), he may well make a decision ‘from the heart’ and keep the Italian brand going somehow.
Carlos Tavares, who will be the CEO of the new combined company, is a real car-guy. And like Akio Toyoda, he also goes racing!
Trying unconventional ideas like the SZ
He may look at unconventional ideas to breathe new life into Alfa Romeo, as Vittorio Ghidella, President of Fiat in 1986, did when he initiated the ‘Experimental Sportscar, 3.0 litre engine (ES30) project. Ghidella specified a puristic coupe with the sporty performance and sensational design as the target for the development contract.
Three teams took care of the second point of the task description in parallel – the Alfa Romeo design department, Fiat Centro Stile and design studio Zagato (responsible for some of the most spectacular and most successful models from Alfa Romeo in racing). This team of three was also given a low weight and the most efficient aerodynamics including ground effect possible, as in a Formula 1 racing car, which was supposed to suck the finished model onto the road through the wind.
The result was an avant-garde design with narrow, square triple headlights, a distinctive wedge shape with a high beltline and a short hatchback. The ES30 was undoubtedly the most radical thing there was at the time as a production vehicle. The coupe corresponded entirely to the aesthetics at the time of Italian design in furniture and fashion.
The elaborate body was made of a glassfibre-reinforced synthetic resin. A new process ensured a particularly smooth surface. A steel skeleton served as the load-bearing structure, which, in addition to high torsional rigidity, also guaranteed low weight. The light metal aluminium was used for the roof skin. The finished car would finally weigh a comparatively low 1,256 kgs.
The drag coefficient of 0.30 was also excellent for the time. Wind tunnel tests indicated a top speed of 245 km/h and a time of 7.5 seconds for the sprint from 0 to 100 km/h. In order to achieve the required ground effect, however, the body had to have such a low ground clearance (around 6 cm) that it would have led to problems with, for example, driveways. The solution was an electrical level control, with the help of which the body could be raised by 5 cm when necessary.
Alfa Romeo 75 technology
As the other requirement was to keep the development costs low, the team used the proven technology of the Alfa Romeo 75. However, the chassis with the gearbox on the rear axle (transaxle design) was in some places know-how the Alfa Romeo racing department adapted to the desired performance. The torsion spring bars on the front axle gave way to conventional McPherson struts, stiff Uniball joints instead of the conventional rubber elements, eliminating inherent movements in the chassis.
The technicians selected the V6 petrol engine with 3 litres displacement from the 75 America model as the drive source. They increased its output to 210 bhp through sharper camshafts and newly programmed engine electronics (Bosch Motronic).
Zagato even developed a racing version of the ES30, which appeared in its own one-make cup in 1993 as part of some Formula 1 races. But the comfortable driving behaviour also proved itself in everyday life, even long tours were a pleasure in the two-seater coupe.
After just 19 months of development, just in time for the planned world premiere at the Geneva Motor Show in March 1989, the ES30 project was ready for production. Since production at Zagato was to take place in the Milan suburb of Rho, the company remembered a legendary combination of letters – SZ for ‘Sprint Zagato’. Despite the relatively high base price, 1,036 cars were sold between 1989 and 1993.
Just as in the late 1990s when the changing business environment forced companies to merge or form alliances to be more competitive, the same thing is happening as this decade ends. Groupe PSA and Fiat Chrysler Automobiles (FCA) will enter a 50:50 merger of their businesses which will create the 4th largest global automotive manufacturing group (by volume) and 3rd largest by revenue.
The new combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly 170 billion euros, recurring operating profit of over 11 billion euros, and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results. At present, the combined balance sheet is strong and therefore provides significant financial flexibility and ample headroom both to execute strategic plans and invest in new technologies throughout the cycle.
The brands from FCA
Broad-based brand portfolio
The combined entity will have a balanced and profitable global presence with a highly complementary and iconic brand portfolio covering all key vehicle segments from luxury, premium, and mainstream passenger cars through to SUVs and trucks and light commercial vehicles. This will be underpinned by FCA’s strength in North America and Latin America and Groupe PSA’s solid position in Europe.
The new Group will have much greater geographic balance with 46% of revenues derived from Europe and 43% from North America, based on aggregated 2018 figures of each company. The combination will bring the opportunity for the new company to reshape the strategy in other regions.
The brands from Groupe PSA brands
Sharing platforms will be key to efficiency
As has been the case with mergers of other groups, sharing platforms will be key to efficiency. The efficiencies that will be gained from optimizing investments in vehicle platforms, engine families and new technologies while leveraging increased scale will enable the business to enhance its purchasing performance and create additional value for stakeholders. More than two-thirds of production volumes will be concentrated on 2 platforms, with approximately 3 million cars per year on each of the small platform and the compact/mid-size platform.
While mergers often see downsizing exercises in facilities and manpower, it has been stressed that this one will not see plant closures or losses of jobs. In a letter to employees, Mike Manley, Chief Executive Officer of FCA, said: “The success of this merger will be underpinned by the history of our companies – a history where we have shown our leadership ability to deliver the successful integration of multiple cultures, passionate care for our iconic brands and a smart, tough, creative determination to succeed.”
About FCA and Groupe PSA
FCA was established in October 2014 when Fiat and Chrysler merged into a new holding company with two main subsidiaries – FCA Italy (previously Fiat Group Automobiles SpA) and FCA US. The portfolio of vehicle brands includes Abarth, Alfa Romeo, Fiat, Fiat Professional, Lancia, and Maserati from the Fiat side, and Chrysler, Dodge, Ram, Jeep from the Chrysler side. In 1998, as Chrysler Corporation, the company had merged with Daimler AG in what was the first of ‘mega-mergers’ in the auto industry. Described as a ‘merger of equals’, it never worked out and the two companies separated in 2007.
Groupe PSA, earlier known as PSA Peugeot Citroen (between 1991 and 2016) has brands with a very long history, notably Peugeot which was founded over 200 years ago and Citroen which celebrated its 100th anniversary in March this year. The Group currently has 5 vehicle brands – Peugeot, Citroen, DS Automobiles, Opel and Vauxhall, the last two brands having been acquired in 2017.
The ASEAN Free Trade Area (AFTA) was conceptualised in the early 1990s and all the member nations signed an agreement to establish it in 1992. It was intended to create a regional trade bloc where goods and services could be exchanged between ASEAN countries with preferential tariffs .
The AFTA agreement’s main feature was the Common Effective Preferential Tariff (CEPT) which required all ASEAN members agree to adopt the same tariff structure and impose import duties of between 0 and 5% on goods and services which originate from any ASEAN country. A condition is that at least 40% of the content of the goods should be of ASEAN origin, besides being made in one of the ASEAN countries. This applies to finished goods, like complete vehicles, as well as components.
The benefit of AFTA to carmakers
Why have AFTA? The simple answer would be strength in unity and size. Having AFTA also means that instead of separate small markets, there will be a single larger one which can be treated as a single common market and estimates in the 1990s already placed the number of consumers at over 550 million – larger than the European Union then. Many ASEAN consumers were already in the middle class or moving into it (although the financial crisis of the late 1990s slowed things down a bit) and this increasing prosperity has certainly very attractive to companies doing business globally.
When AFTA was conceptualised in the 1990s, it was estimated that the single market would have over 550 million consumers. Today, the potential customer base is estimated at 680 million, an attractive number for carmakers.
For carmakers, AFTA was an attractive idea and during the 1990s, a number of global players began to establish big factories in Thailand and Indonesia. These would become regional hubs for certain popular models and as there would be no import duty imposed exporting vehicles between ASEAN countries, it was as good as making them in each country. The major advantage was that concentrating production in a single factory meant bigger volumes which would provide the vital economies of scale to push production costs down and have more attractive pricing.
Groupe PSA, the French automobile conglomerate with brands like Peugeot and Citroen in its group, also looked at AFTA but didn’t see the right numbers in the 1990s, and it was also focused on China which was then a fast-growing market. However, they kept an eye on the market growth in ASEAN and in Malaysia, where their partner is Naza Corporation, Peugeot sales were growing rapidly and accounted for 86% of the volume sold in ASEAN.
Assembly operations at NAM, now majority owned and managed by Groupe PSA. (File image)
Malaysia’S Naza Automotive Manufacturing plant becomes a regional hub
The Malaysian company also had its own assembly plant in Kedah and with Naza having proven its commitment, Groupe PSA made the decision to use Malaysia as its regional hub. The decision was announced at the Peugeot World Conference in January 2010. However, planning took some time but, in the meantime, Groupe PSA began small volume production of a Peugeot model at Naza Automotive Manufacturing (NAM) as a shared operation.
Early last year, the French company acquired a majority stake in the business operations of NAM which began operations in 2004. Groupe PSA and Naza will jointly produce Groupe PSA-branded cars for Malaysia and other ASEAN markets which now has a potential customer base of 680 million. Further opportunities will also be explored beyond ASEAN, with a potential to contribute significantly to Malaysia’s economy.
Peugeot 3008 and 5008 models assembled in Malaysia will be exported to the Philippines.
First exports to the Philippines
This month, NAM will begin exporting its first shipment, a batch Peugeot 3008s, to the Philippines. “The Peugeot 3008 with the Peugeot 5008 1.6 THP are targeted to be available in the Philippines with more than 4,000 units by 2023. The Philippines is the first ASEAN country where our cars manufactured at NAM is being exported to under the AFTA,” said Laurence Noel, Head of ASEAN & CEO of Naza Automotive Manufacturing, Groupe PSA. “More cars will be exported to other ASEAN countries very soon,” she added.
Groupe PSA’s SUV offensive with 13 modelslaunched worldwide by the five brands – Peugeot, Citroën, DS Automobiles, Opel and Vauxhall – drove the Group’s robust sales momentum in the first half of 2018. At more than 609,300 units, SUV sales accounted for nearly 28% of the Group’s sales. The success of these models has made Groupe PSA at the end of May, number two in this segment in Europe, with a market share of 16.9%, and number one in the B-SUV segment.
Peugeot is the leading brand in the SUV segment in Europe, selling more than 339,200 SUVs worldwide (up 26%) in the first half of 2018. Since the beginning of the year, Peugeot confirms the upward trend of the PEUGEOT 3008 SUV, with 144,000 units sold (up 37%); it has also enjoyed strong demand for the new PEUGEOT 5008, which has logged 58,900 unit sales.
The Citroën SUV offensive launched last autumn is being driven by the C3 Aircross in Europe and the C5 Aircross in China, which together represented nearly 80,000 units sold in the first half of 2018, for a total of 135,000 since their launch. The launch of the C4 Aircross in China and the C5 Aircross in Europe in the second half will allow Citroën to accelerate its offensive.
Launched worldwide in February 2018, the DS 7 CROSSBACK, first DS of the second generation is key to growth at DS Automobiles, which came up to +35% in the second quarter. Two out of three customers choose the top-of-the-line versions, and while the DS 7 CROSSBACK offers premium equipment from the entry level, every second customer chooses the DS CONNECTED PILOT option, which opens the way to level 2 autonomous driving.
Excerpt from the full report: China & South East Asia: continued sales recovery…
With sales of 163,000 vehicles in China & South East Asia, up 6.9%, the Group has seen the first signs of a sales recovery. Citroën was the biggest contributor to the improvement, with sales up 50.5%, thanks to its range of sedans and the local launch of the C5 Aircross SUV last September.
The volume mix of the PEUGEOT 3008/4008/5008 SUV family is also improving, representing 40% of the brand’s total sales volumes. DS Automobiles sales are stable in the second quarter of 2018. In China, the DS 7 CROSSBACK was launched at the Beijing Motor Show in late April 2018.
During the first half, the Group made significant progress in strengthening its operations in South East Asia with the creation of a joint venture with Naza Corporation Holdings (Malaysia). The Group has sold over 4,900 vehicles in ASEAN area in the first half of this year. The acceleration in this part of the region is now noticeable.
Naza Corporation Holdings and Groupe PSA have announced the signing of a share sale agreement and a joint venture agreement, officially establishing shared operation of the Naza Automotive Manufacturing (NAM) plant in Gurun, Kedah, as the first manufacturing hub in ASEAN for Groupe PSA. In attendance to witness the event was the Prime Minister of Malaysia, YAB Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak.
Groupe PSA, as a global automotive player and the second largest carmaker in Europe, is confident and committed to the Malaysian and other ASEAN markets, holding majority stake in the business operations of Naza Automotive Manufacturing (NAM). The Naza Group will have sole responsibility for the distribution of Peugeot, Citroën and DS Automobiles in the domestic market and, with Groupe PSA, will explore distribution prospects in other ASEAN markets to address the potential 680 million customers in the region, where the automotive equipment rate is growing.
With this agreement in effect, Groupe PSA and Naza will jointly produce Groupe PSA branded cars for Malaysia and other ASEAN markets. Further opportunities will also be explored beyond ASEAN, with a potential to contribute significantly to Malaysia’s economy.
This strategic partnership will benefit from the strong and qualitative supplier network implemented in the region. The Naza Automotive Manufacturing (NAM) plant has been operational since 2004, has a workforce of close to 450 people and boasts a 50,000-vehicle production capacity, operating in line with the highest international quality standards.
Naza Group and Groupe PSA are now strengthening their partnership, established in 2008, to develop a sustainable and profitable business in Malaysia and in the rest of the ASEAN region. Groupe PSA’s investment in the Naza Automotive Manufacturing (NAM) plant will see the implementation of its EMP2 modular platform dedicated to C and D segments – taking the partnership and Naza’s commitment to another level.
Carlos Tavares, Chairman of the Managing Board of Groupe PSA, commented: “The creation of the ASEAN hub in Gurun, Kedah is a significant leap forward for Groupe PSA which will lead to the development of a profitable business in the region as part of our Push to Pass strategic plan. We are pleased to partner with Naza Corporation Holdings and continue leveraging our historical relationship.”
“We are grateful for Groupe PSA’s support and confidence in Naza Corporation Holdings as we take our longstanding partnership to greater heights. With this collaboration, there is enormous potential for Kedah to be the leading automotive manufacturing hub in Malaysia,” said SM Nasarudin SM Nasimuddin, Group Executive Chairman/CEO, Naza Corporation Holdings.
Together, both Groupe PSA and the Naza Group are poised to achieve a stronger footing in the automotive industry within the ASEAN region.
