Frédéric Saint-Geours, managing director of PSA/ Peugeot-Citroen's Automobiles Peugeot unit, talked about the company's goals with reporter Georg Auer.
Where do you want to take PSA in the future? Do you want to make it Europe's largest automaker?
We want to reach a volume of 4 million cars by 2006. We are not interested in who is the biggest. That is not our problem. Our intention is not to be the biggest, but to have good profitability. We want to have 6 percent return on revenue.
Why does everybody discuss margins as the return on revenue rather than the return on investment?
As a company we are not only selling numbers of cars but we want to make money. We have margins on revenue and return on investments. Our return on investment is 13.5 percent.
Will you try to enter the highest luxury segment?
Certainly not. We don't think that we have the time for that. PSA is a generalist automaker that produces at least 100,000 mainstream cars per year. We don't think the investment would really pay. We don't intend to go this way.
But wouldn't having premium models help as vehicles on which to introduce innovative technology that could then migrate to low-priced cars?
They are useful in that way. We did it with the 607. The 607 was fitted first with the [diesel] particulate filter, then we launched it on the 406 and now we have it on the 307.