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PSA triples its recurring operating income and completes its turnaround



PSA Peugeot Citroën

We have completed our plan in record time thanks to the involvement of the entire company and its stakeholders,” said Carlos Tavares, Chairman of the PSA Peugeot Citroën Managing Board. “I am delighted with this collective success. It puts our company back in the race and proves its potential. In an unsettled international environment, agility and operational excellence are key to success. We will be able to harness this strength when implementing our new plan for profitable growth“.

The Group’s pro forma 1revenue for 2015 was €56,328 million, compared with €53,301 million in 2014. After reclassification of Faurecia’s Automotive Exteriors business, net revenue was up 6%, to €54,676 million.

The Automotive division’s revenue showed a similar improvement on 2014, rising 4% to €37,514 million. The main growth drivers were an increase in net prices, positive product mix and volume effects, as well as a favourable currency impact.

Group Recurring Operating Income tripled to €2,733 million in 2015, from €797 million in 2014. Growth was driven mainly by the Automotive division, which posted a €1,808 million increase on the back of a positive product mix, which reflected the success of a young vehicle range, and further cost-cutting initiatives in the second half of 2015.

More than one-third of the improvement was due to a favourable operating environment.

The Automotive division’s pro forma Recurring Operating Income, which includes 50% of the results of the Chinese joint ventures, was up €1,882 million to €2,248 million.

The Group’s non-recurring expense of €757 million in 2015 was primarily due to restructuring costs incurred by the Automotive division.

The Group’s financial expense stood at €642 million compared with €755 million in 2014.

The Group’s net profit for the period totaled €1,202 million, up €1,757 million on 2014.

Banque PSA Finance reported Recurring Operating Income of €514 million2 , a rise of €177 million on 2014. The Group’s strategic partnership with Santander Consumer Finance allows it to benefit from some of the most competitive refinancing conditions on the market.

Faurecia’s Recurring Operating Income amounted to €830 million, a year-on-year increase of €235 million.

Free cash flow of manufacturing and sales companies totaled €3,658 million, due to an improvement in funds from operations, a €942 million increase in the working capital requirement, and dividends from Chinese joint ventures with Dongfeng, and from Banque PSA Finance.

Excluding restructuring expenses and non-recurring items, operational free cash flow for the period stood at €3,803 million.

Total inventory, including independent dealers, stood at 350,000 vehicles at 31 December 2015, up 11,000 units from end-2014.

The manufacturing and sales companies’ net financial position at 31 December 2015 was a positive €4,560 million, up €4,012 million on 31 December 2014.

Market outlook
For 2016, the Group expects the automotive market to grow by about 2% in Europe and 5% in China, and to shrink by around 10% in Latin America and 15% in Russia.

The Group exceeded its operational targets
With €3.8 billion in operational free cash flow generated in 2015, the Group has exceeded its target of €2 billion for the 2015-2017 period.

The objective was to reach an operating margin 3 of 2% for the Automotive division in 2018, targeting 5% within the timing of the next mid-term plan 2019-2023. That target was also exceeded ahead of schedule, with the Automotive division reporting a 5% operating margin as of 2015.

PSA Peugeot Citroën will present its plan for profitable growth on 5 April 2016.

As 2015 is the final year of the rebuilding of the Group’s financial fundamentals, no proposal will be made to pay a dividend for the 2015 financial year. A dividend policy in line with sector practices will be proposed as from the 2016 financial year.

Financial Calendar

  • 27 April 2016: First-quarter 2016 revenue
  • 27 July 2016: 2016 interim results
  • 26 October 2016: Third-quarter 2016 revenue

The PSA Peugeot Citroën Group’s consolidated financial statements for the year ended 31 December 2015 were approved by the Managing Board on 15 February 2016 and reviewed by the Supervisory Board on 23 February 2016. The Group’s Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

The annual results report and the 2015 financial results presentation are available on, in the “Analysts/Investors” section.

The PSA Peugeot Citroën Group’s consolidated financial statements for the year ended 31 December 2015 were approved by the Managing Board on 15 February 2016 and reviewed by the Supervisory Board on 23 February 2016. The Group’s Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

The annual results report and the 2015 financial results presentation are available on, in the “Analysts/Investors” section.

1 Includes Faurecia’s Automotive Exteriors business, covered by a disposal plan announced on 14 December 2015 and reclassified under “Operations held for sale or to be continued in partnership” according to IFRS5.

2 100% of the results of Banque PSA Finance. In the financial statements of PSA Peugeot Citroën, the joint ventures are accounted for at equity, and the other businesses covered by the Santander agreement are reclassified under “Operations held for sale or to be continued in partnership”.

3 Ratio of Recurring Operating Income to revenue for the Automotive division.

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Auto Industry News

Freightliner introduces four year or 800,000km warranty




Freightliner introduces four year or 800,000km warranty – Freightliner has introduced Australia’s best warranty on any American truck.

The generous extended warranty covers the Argosy cab-over and Coronado 114 conventional truck for four years or 800,000km.

The extended warranty is not a short term offer, and will be made available for new customers all the way through until December 31, 2016.

“Freightliner is committed to supporting our customers and their businesses,” says Freightliner Australia director, Stephen Downes.

“Offering Australia’s best warranty on any American truck is a good example of that commitment.”

Mr Downes says Freightliner is prepared to back its product because of its quality.

“We are confident in our product and we want new customers to be able to share our confidence by knowing the truck is covered in the rare event there is an issue,” he says.

Freightliner customers are also supported by one of the strongest service networks in Australia, which is made up of more than 40 service points.

All Freightliner trucks are covered by a standard one year/unlimited km warranty, while the extended warranty has been introduced for the most popular models in the range, the Argosy and Coronado 114.

There are two parts to the extended warranty program. The first is the basic complimentary extended warranty for three years/800,000km, which incorporates the components originally covered by the basic vehicle warranty.

There is also the drivetrain component complimentary extended warranty for two years/800,000km, which covers such items as the transmission, clutch, driving axles and more.

Neither the standard or extended warranties cover the truck’s engine, which is covered by the engine manufacturer, being either Detroit or Cummins.

Potential customers should consult a Freightliner dealer for further details and exclusions.

The introduction of the extended warranty program comes as Freightliner further strengthens its product offering with the Cummins ISXe5 Argosy cab-over, the first Argosy to be offered with Selective Catalytic Reduction. Unlike some of its competitors, Freightliner offers its customers the choice of a Detroit engine or an optional Cummins powerplant in either Coronado or Argosy.


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Narva’s Most Powerful Globe



narva-Platinum Plus 130

All New ‘Platinum Plus 130 – Narva’s Most Powerful Globe – Leading automotive lighting and electrical company, Narva, continues to raise the benchmark in the lighting stakes following the recent release if its ‘Platinum Plus 130’ globes which offer huge performance gains over more traditional globes.

The all-new Platinum Plus 130 globes provide a remarkable 130 per cent higher light volume compared to a standard globe. Additionally users also benefit from a 20 per cent whiter light output (3750°K).

The longer beam penetration provides extra forward visibility of up to 40 metres, while the whiter light output can considerably reduce driver eye fatigue and improves safety by increasing overall road visibility.

Despite the performance gains, Platinum Plus 130 globes are ADR approved and totally street legal, providing a safe upgrade to OEM lighting across a wide variety of car, light commercial and motorcycle applications.

Another benefit of Narva’s new globes is that there is no increase in power draw or heat displacement meaning the globes are suitable for fitment in polycarbonate headlamps.
Available in 12V in H4 (60/55W) and H7 (55W) types, globes can be purchased from leading automotive outlets.

The Platinum Plus 130 globes are the latest addition to the Narva performance globe range.
Also available are ‘Plus 60 Longer Life’, ‘24V Plus 100’, ‘Plus 100’, ‘Plus 120’, ‘Blue Plus 110’ ‘Arctic Plus 50’ and ‘Intense Blue Plus 30’ allowing users to select a globe to best suit their needs.

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Subaru do™



subaru do

Subaru do™ Subaru Australia has announced a bold brand platform that brings to life a new brand promise: Subaru do™.

Over the next year, ‘do’ will be incorporated into every customer touch point, from dealerships to the digital space and marketing campaigns.

Subaru’s General Manager – Marketing, Andrew Caie, said: “2016 heralds the next chapter in Subaru Australia’s brand journey.

“There is a realisation that to grow we need to attract new customers to the brand.

“That means making us more accessible, more relevant and paramount to that is the need to inject new personality into the brand.

“Subaru ‘do’ will be the translation of Subaru’s tangible but human benefits to a broader market and creates a local expression working hand-in-hand with Subaru’s global tagline, Confidence in Motion.

“Do is a very short word with a very big meaning for Subaru in Australia, and will activate a new customer experience to come with buying and owning a Subaru. ‘Do’ is a thought that  originates from what owners already see in Subaru’s fabric, a brand that is famous for getting more done, and having more fun.” Mr Caie added.

“Do is the ultimate verb and indicates a renewed focus on delivering an exceptional customer experience made possible by removing obstacles for customers choosing, buying and owning a Subaru.

“We will rollout  ‘do’ at every touch point, model-by-model over the coming months starting with the new Subaru Forester later in March and drawing on an iconic ‘do, do do, do do, do do do…’ sound signature, the refrain from Lou Reed’s ‘Walk on the Wild Side’ in multi-platform digital and television campaigns.”

“Do” aligns closely to bring to life Subaru’s global “Confidence in Motion” direction that is also being incorporated into the brand’s communications locally.

The “do” direction replaces the successful All 4 the Driver initiative introduced six years ago.

The new direction will emerge next Sunday (March 20) with a new television commercial featuring the latest Subaru Forester.

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