It's a 10-year plan, the company says.
PSA Group’s next step from its global expansion is launching in the United States. This claim sounds like something we’ve heard at least a couple of times so far, but this time it’s not just a speculation, as the French manufacturer has officially named former TrueCar and Nissan executive Larry Dominique as a Senior Vice President of PSA North America.
PSA’s American affair started back in 1960 when the Peugeot 404 saloon was introduced, followed by the 504. After difficult 30 years in the U.S., the brand left North America in 1991, but is now poised to return as it conquers “the rest of the world step by step”.
Automotive News is reporting the PSA Group will start its American mission by launching car-sharing services. The manufacturer says it is starting its operations through Free2Move, the Group’s mobility brand, and its partner Travelcar, a start-up founded in 2012. Once the network is established, Dominique and his team will start promoting PSA’s brands and create a sales channel.
“This is a market that, as a full-line automaker, you need to be part of,” Dominique told Automotive News. “But this is a 10-year project. It’s not about jumping in and creating market share as quickly as possible.”
So far, it hasn’t been confirmed which of the three PSA brands, Peugeot, Citroen or DS, will be launched first and whether it will be followed by another brand. Dominique is also still to decide whether retailing will occur through a traditional independent dealership network or some other way.
“It’s going to be a significant amount of money to re-enter the market,” he said. “But we haven’t set a number. If we can find more efficient ways to market and sell our vehicles - whether it’s in a traditional partnership with investors or not - those are things that can heavily influence the cost of coming to market.”
Meanwhile, PSA is currently the only automaker in the world with registered interest in buying Proton and Lotus. A potential deal could open many doors for the French company in the South-East Asian market.
Check out the press release section below for more details.
Source: Automotive News
Introduction of carsharing services in Los Angeles from April 3rd 2017 is a 1st step for Free2Move in the United States
• The progressive entry into North America is a 10-year project within "Push to Pass" plan of PSA Group
• The North America project will be executed with the creation of an entity in the region managed by Larry Dominique
The 1st launch of mobility services in North America is through Free2Move, PSA Group’s mobility brand and its partner Travelcar, a start-up founded in 2012. The car sharing service for travellers will be 1st available in Los Angeles airport starting from April 3rd 2017 before a larger deployment in the United States. This offer is designed to optimize cars ensuring they rarely go unused, providing advantageous solutions to car owners (free or advantageous-price parking in addition to the benefit from the rent) and to car users (rental price approx. 50% less expensive than with a traditional car rental offer).
PSA North America with initial task of developing the mobility services with the Group's partners will start developing these projects. The following step is to develop mobility solutions with PSA Group’s cars, before marketing vehicles directly in North America, identifying regional sourcing opportunities when appropriate; as per the “Push to Pass” plan unveiled on 6 April 2016.
Larry Dominique is appointed Senior Vice President & Head of the North American entity. He has over 30 years of experience in the U.S. automotive industry, having worked at General Motors, Chrysler, Nissan - and most recently- serving as President of Automotive Lease Guide (ALG) and Executive Vice President of TrueCar.
PSA North American entity reports PSA Group’s Corporate Planning and Programs, led by Executive Vice President Patrice Lucas.
“With the creation of PSA North American entity, PSA Group makes an important step forward in the roll-out of our project to progressively enter the region” said Carlos Tavares, Chairman of the Managing Board. “Moving forward, we will ramp up our mobility activities and the development of car-sharing services, among other efforts. Today we start with our partner TravelCar.”