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The Russian car market in 2016 decreased by 11%

According to the AEBusiness, by the results of 2016, the Russian car market decreased by 11% to 1 million 425 thousand 721 cars.

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Top news

KIA Rio became the best-selling model in Russia in 2017 16.01.18 - 16:59 KIA Rio became the best-selling model in Russia in 2017

KIA Rio displaced Hyundai Solaris from the first line of the sales rating.

Supplier Business

Supplying PSA

Supplying PSA

Date of issue: 03.11.10

Format: A4, 95 psges

Price: 1 750 €

 

 

 

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SupplierBusiness’ “Supplying PSA” analyses the carmaker’s procurement strategy including its vertical integration, supplier selection criteria and biases, together with a host of aspects defining the current and potential evolution of the relationship between the French OEM and its increasingly international supply base.

Having missed the ambitious targets of the CAP2010 program and having undertaken an overhaul of its management team in 2009, PSA now has new priorities aimed at a return to profitability, increased exposure to high growth markets and improving the operational efficiency of its manufacturing base in Europe. While the long waited return to profitability should materialise in 2010, the other challenges might prove more difficult to achieve.

In its favour, PSA has a vehicle line-up which is receiving some major updates to its core models, a near premium line – the DS – which has been well-received so far and a number of targeted partnerships, ranging from Fiat in Light Commercial Vehicles to BMW featuring increasingly important ties which suggest the potential of a full-fledged alliance.

Important changes are under way in PSA’s purchasing strategy, with a new CPO since September 2010 in Yannick Bezard , and supplier relationships must become a source of competitive advantage for the automaker according to PSA’s CEO Philippe Varin. It has been a while since the carmaker was trying to establish relationships based on 6% annual price reductions and 40% global sourcing with its CAP2010 plan. It is undeniable that pressures on price and on the supplier’s footprint optimisation still persist, especially on smaller suppliers. However the carmaker has the clear intention to develop relationships with a smaller group of selected suppliers, resulting in greater savings and more innovation received from the now 20-strong strategic supplier community. Other major suppliers will benefit from a new process to implement supplier-generated innovations, which are at the core of PSA’s more upmarket brand positioning.

Suppliers acknowledge PSA’s less confrontational approach in managing relationships by awarding the carmaker a SuRe index of 557, up from 508 in 2009. There are still some aspects where the carmaker needs to record improvements in order to fill the gap with other competitors who are preferred by suppliers, such as the Volkswagen group as a whole, which remains a benchmark for PSA in a number of areas.  In fact a new Volkswagen-inspired modular policy together with increased part life and standardisation is creating room for more substantial volumes per part supplied, surely contributing to the increased attraction of the French automaker to suppliers’ eyes.

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Press releases on this topic

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    The indicators of 2010 are detected as a promising after the failed results of 2009, when the production of trucks decreased by 64,5%. By the results of year the production of trucks in Russian Federation was 150,4 units that was more by 64,9% than the results of 2009.

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