Peugeot Citroen are going up a gear in a drive towards doubling profitability by the year 2010. The recovery plan for Europe’s second-biggest car maker is based on a programme of cutting costs, driving up efficiency and rolling out new models. Chief Executive Christian Streiff said he wanted the French group to sell more than four million cars worldwide by the end of the decade and have an operating profit margin of between 5.5 percent and 6 percent. Streiff believes the strategy will support a Peugeot comeback and accelerate Citroen’s revival.
A growth in demand in eastern Europe is being targeted. The figures are in line with market analysts expectations and compare with rival Renault’s 6 percent by 2009, but the news still had a negative impact on Peugeot shares.