Europe’s second largest automaker which also now has GM’s Vauxall and Opel brands is planning to expand its footprint. Larry Dominique, CEO of the recently establishedNorth America has been given the task to establish the brand efficiently in the world’s second largest automotive market.
“We will take advantage of new technology while keeping the values of a car company,” said Dominique. Also on his agenda are developing partnerships and fully understanding “the mentality of a new consumer in the marketplace.”
Dominique’s strategy to build up the brand presence will be slightly different as he is building PSA’s North American business model as a greenfield project. It began with bringing in a car-sharing service, Free2Move, that’s now up and running in the US [although it is a peer-to-peer service, not one that currently uses Peugeots or Citroens].
PSA chief Carlos Tavares calls the re-entry a 10-year plan. “It’s dramatic to say we’re doing it from scratch; there has been a lot of planning,” Dominique says. Also in the works is a dealership network with related services, such as vehicle financing, parts and service.
Dominique is also aware of the local franchise laws and capital investments required. “To build a dealer network from scratch would cost billions of dollars,” he says. “We are looking for progressive, innovative and digital-minded partners. I’m not prepared to talk about how we are going to come to market (in North America) but it will be practical, traditional and use technology.” Of his new assignment, he says, “We have a chance to do this once, and only once.”