It was only a few years ago that French automaker PSA Peugeot Citroën was on life support due to massive losses and poor sales. But thanks to an infusion of cash from Chinese automaker Dongfeng and the French government, the company was able to right the ship. The past couple of years has seen PSA Peugeot Citroën emerge as a healthy and profitable automaker. Now the company is looking at expanding into new markets, including the U.S.
According to Automobilwoche, officials at PSA say the U.S. and Iran are under consideration as the first markets for expansion.
"Our Back in the Race restructuring program has been successfully completed. Now comes the next step. And this has put the issue of the U.S. on the table," said DS brand chief Yves Bonnefont.
It is a "natural candidate" for PSA in North America, Bonnefont said.
Citroen spun off DS into its own brand last year and its aimed to take on the likes of Audi and Mercedes. The plan is to have six models by the end of this decade ranging from the DS3 (Mini Cooper competitor) to a possible flagship sedan.
But Richard Lucki says there are a number of problems the company would need to solve before entering the U.S. Lucki should know as he managed PSA Peugeot Citroën's affairs in the U.S. until 2013 when the company closed their office in Detroit. He explained PSA's return would be difficult as the company doesn't have a dealer network or a manufacturing base.
"Pricing is an issue. Everyone else -- Audi, BMW, Mercedes -- has manufacturing here," Lucki said.
We'll find what PSA's plans are on April 5th.
Source: Automobilwoche via Automotive News (Subscription Required)