Paris Motor Show Interview with General Manager of Citroen Global

At this year's Paris Motor Show, we conducted an exclusive interview with Pengfei, the general manager of Citroen Global. The following is a summary of the main contents of the interview:

Reporter: How do you think of the mid-level car market?

Pengfei: Probably more than one-third of the global car sales are completed by the mid-tier car market, so this part of the market is also one of the priorities that we must not ignore in planning. We need to provide more for this segment of the market. More competitive products. As we all know, there are different segments in China's mid-level car market. So far, we have achieved a relatively complete layout in the mid-size car market. For example, in the compact field, we have C4, which is the Sega in the Chinese market, in the high-end intermediate level. The car market is about to launch C4 L. In the future, we will launch more new products for this market.

Reporter: What is the target sales volume of Citroën before 2020? Which of these markets are the focus of our incremental growth?

Pengfei: The Chinese market is the market we expect the most; followed by Latin America, such as Brazil; and Russia and the Mediterranean coast along North Africa, as well as Turkey, these markets have greater growth potential. For example, if the ownership rate of vehicles in Algeria is 75 per 1,000 and that in Europe is 600 per 1,000, the potential for future development in these areas is very large.

Reporter: Consumers in the Chinese market are now paying more and more attention to the brand. The choice of the brand is becoming more and more stringent. So what plans does Citroen have for brand promotion?

Peng Fei: I think there are several factors that are very important: First of all, the brand image comes from the intuitive impression that consumers usually have on models. In this regard, we have seen that the appearance of the Citroen model has been greatly improved, and the old-fashioned appearance has become less and less. For example, C4, C5, and future C4 L have all changed in appearance and are more popular with consumers. I believe these will have a great advantage for Citroën to establish a brand, and these benefits will become more and more obvious. Secondly, in terms of distribution networks, we have completely reorganized and made many improvements in both "quality" and "quantity." In particular, we have done a lot of work in personnel training. For example, we have adopted the “Lean Management Coaching” training method, and these measures have already achieved initial results. According to this year's JD Power survey, Citroen's sales and after-sales service ranks fourth among more than 40 auto brands. This shows that our unremitting efforts have already given consumers some new insights into Citroen. Third, in China, we invite Chinese badminton teams to speak as one of the ways to improve our brand image. In addition, Citroen's related activities in racing (WRC) are also very important for improving brand image. In addition, at every auto show, we conduct public opinion polls to investigate what kind of models consumers like and what are their needs. At the latest public opinion surveys at the Geneva Motor Show and the Beijing Auto Show, we ranked first, both at the Geneva Motor Show and at the Beijing Auto Show.

Reporter: In China, in the face of energy-saving emission reductions and vehicle growth, the demand for small-displacement vehicles is increasing. Will Citroen have any product plans for small-displacement vehicles in the Chinese market?

Pengfei: First of all, our newly launched C4 L and new Elysee models are very eye-catching on the energy efficiency of engines. By adopting the latest engine energy-saving technologies, we have high efficiency and low fuel consumption; and in the future we will also Further optimize existing engine technology. Second, to achieve a lightweight body. The third is to consider the use of rubber parts. Fourth, we must consider adopting new hybrid technologies. In Europe, we currently have diesel, diesel hybrid, micro-hybrid and fully-mixed diesel-powered engines. The same is true in China. In the future, we will introduce hybrid solutions based on different uses, budgets, and customer needs.

Reporter: It is said that the 1.6T engine will be put into production in China. Will there be other engines produced in China? Will it expand the scale of the Shanghai R&D center?

Pengfei: Yes, of course, we will gradually put into production other types of engines, and we must put into production is the best PSA engine. Second, if necessary, we will vigorously develop the Shanghai R&D team and provide them with more support. For the two joint ventures in China, Shenlong Automobile Co., Ltd. and Changan Automobile Co., Ltd., we will also strongly support it, so that the three companies' R&D capabilities will be best utilized. At the same time, we hope to fully strengthen the importance of the R&D team in Shanghai and fully enhance and expand the strength of the Chinese R&D team.

Reporter: You just mentioned many times the importance of the Chinese market and Citroen's emphasis on the Chinese market. Then what strategy will Citroen use in the future to reflect the importance attached to the Chinese market?

Peng Fei: First of all, your understanding of the Chinese market is far more profound than that of me. I will try to answer it for your reference. Citroen must have an accurate and clear positioning. First, there must be technological innovation. From the product level, we need to closely integrate creativity and consumer comfort; and each time we launch a new car, we must bring freshness to the market and users. Second, we must pay more attention to the distribution network and accelerate Promote. We have added 80 distribution outlets in China last year and this year, and we continue to work hard.

Reporter: After the 1.6THP engine was put into production in China, will the engine used in the past be gradually replaced?

Pengfei: In the future, you will gradually see that we have invested in the new Citroën engine in the Chinese market, but the existing engines will not be completely replaced.

Reporter: When did Citroen begin to design a car like the C4 L?

Peng Fei: It has been a few years. Everyone knows that a car can really be replaced in 4 years. The C4 L's design has been positioned as a sedan from the beginning and is based on a sedan. C4 L is mainly aimed at the high-end mid-size car market. The most important feature is the comfort of the rear seats. For example, the rear seats of the C4 L are fully integrated with ergonomic principles, and the inclination is the 29 degrees that is most suitable for human relaxation; The headrest adopts a space headrest design and is very flexible. It can be folded up and down and left and right. In addition, the C4 L suspension system has undergone special adjustment. In this field, the humanization of Citroen is very well known. From a technical point of view, the C4 L is also very modern, with a touch screen navigation, keyless activation system, and a series of technical equipment such as reversing images. In addition, the C4L's engine is also very advanced. I have already driven a prototype. Frankly speaking, few prototypes can achieve such comfort.

Reporter: Why would you choose a 1.6THP engine to match C4 L?

Pengfei: The C4 L is mainly aimed at the high-end mid-size car market. The performance of this engine is very good. Its high power, high torque and fuel economy are very good. In addition, this engine will play a very important role in the future Citroen's product strategy, and it needs to improve quantitative production. In 2015-2020, the market environment will impose stricter regulations on fuel consumption, especially in China. Therefore, when we introduce a new car, we will have stricter regulations on fuel consumption. The 1.6THP engine can make We meet such an environment as "average fuel consumption."

Reporter: What is the sales target of C4 L in China?

Pengfei: We strive to enter the top five in the high-end mid-size car market.

Reporter: As a high-end mid-size car, each car must have its own core competitiveness. For what we have learned so far, the engine may be the strongest competitiveness of C4 L. Don't you know if you think so? At the same time, the appearance of the C4 L mentioned just now is very beautiful, the comfort is very strong, and the human facilities such as electronic facilities are doing very well. What do you think is the most prominent advantage of the C4 L?

Pengfei: The most prominent advantage of C4L is the overall situation, including the comprehensive conditions of 1.6THP engine, stylish appearance, 2710mm extra long wheelbase beyond the same level, and a real comfortable driving environment for the user. Of course, the price is also very competitive.

Reporter: From the C4 L this car has seen the changes made by Citroen for the Chinese market, but in the past few years the best development in the Chinese market is the SUV. The future is expected to be better is the MPV, Citroen in the Chinese market has not yet SUV, MPV products, this is why Citroen probably introduced when?

Pengfei: We already have an SUV, and C4 AIRCROSS is the first crossover city SUV. It's just not localized. As for the MPV, it's not easy to reveal specific dates at present, and it's too early to tell what may happen in the future. I hope you will always pay attention to us.

Reporter: Citroen is preparing to make efforts in the Chinese market, and the Chinese auto market is in a period of rapid growth from growth to slow growth. How will Citroen respond to such changes?

Pengfei: First, I think that with the increasing number of vehicles, it is normal for the growth rate to stabilize and gradually decrease. Although the growth rate is decreasing, the absolute number of vehicle growth is seen from the figure of its growth proportion. It is still very substantial, so we are not too worried about the issue you mentioned. Secondly, I learned from the media that there is a problem of excess production in China, which will affect prices. Therefore, we also set ourselves targets to better respond to the current situation by improving productivity. It can be said that we have done a lot of work in improving the cost.

Reporter: At present, Citroen has two joint venture partners in China. Please talk about the relationship between Citroën and the two joint venture partners and discuss further strategic steps in the future cooperation with Dongfeng Motor.

Peng Fei: We have discussed this matter several times with Dongfeng Motor and finally formed a very close strategic partnership. The two shareholders of PSA and Dongfeng are completely transparent. We have consensus on the future and will continue to cooperate as strategic partners.

Reporter: I have a friend who has driven a Citroen model. I am very much convinced of this car. At the same time, I may recommend it to people around me. However, in the domestic market, the brand competitiveness of a consumer may be more moderate, so do you think C4 L? What is the advantage of this car?

Peng Fei: The most prominent advantage of C4 L should be modern and very advanced. At the same time, it is very comfortable and can be said to be both modern and comfortable. In terms of comfort, it has exceeded the level of high-end mid-size cars, but its price is still within the range of high-end mid-size cars. And I'm convinced that the C4L consumers who test drive will surely spread the word to help us do propaganda. I have personally traveled in this car and I feel really comfortable.

Reporter: Will the current European debt crisis affect Citroen's investment in the Chinese market?

Pengfei: No! Because China is our primary market to consider, and our investment outside Europe starts with China, which is a very important pillar of our strategy. Moreover, in Europe, market sales have already been reduced by 25%. In terms of vehicle ownership, in 2007, there were more than 2 million vehicles in Europe. This would have been maintained in 2012 this year. However, on the data, at present, the Chinese market has taken one third of its share, which is the third of market sales. One in a minute. This means that our market structure in Europe needs to be re-assembled, which makes it even more clear that we need special consideration in the development of markets outside Europe. Of course, while we are re-adjusting the structure, we must consider the flow of funds in particular. Some of the original projects in Europe have to be delayed, but this will not happen in China. China's projects have been proceeding as planned. Our frequency and number of investments in China will neither decrease nor slow down.

Reporter: Just now you mentioned at the press conference that sales in overseas markets outside of Europe may drop to 50% by 2020. I would like to ask what this 50% refers to. And compared to other competing brands in China, such as Volkswagen or Toyota, do you think Citroen will react in the Chinese market?

Pengfei: I don't comment on other competing brands. We used to attach importance to the European market in the past. This leads us into a misunderstanding. Therefore, we now attach special importance to strengthening the development of markets outside Europe.

Reporter: The comfort of the car is highly valued in the European market. In the Chinese market, it emphasizes the powertrain, especially the performance of the engine. What advantages does the C4L have in addition to comfort?

Pengfei: Actually, I think that in the Chinese market, comfort is also very important, because Chinese consumers also want the comfort of a car.