French car group PSA Peugeot-Citroen which hit the profits accelerator last year announced ambitious plans yesterday to tune up its operating performance over the next three years.
But while PSA was moving into overdrive, fellow car maker DaimlerChrysler was stuck in the slow lane, searching for a solution to problems at Chrysler in the US.
Stuttgart-based DaimlerChrysler is expected to announce plans for a special committee under chairman Jurgen Schremp to assume control of the Mercedes-Benz and Chrysler operations.
PSA announced yesterday that profits for 2000 had climbed 80% to €1.3bn (£818m) and that it was hoist ing the dividend pay-out from €2.7 a share to €5.
The group's performance has been driven by the success of models like the Peugeot 206, which is produced at Ryton, Coventry, and the Citroen Picasso. "PSA has been able to match attractive models with lean production," an industry observer said.
But the French car maker, which ranks sixth in the world, said that it was seeking to do even better in the future. Chairman Jean-Martin Folz shrugged off worries about a downturn in the European car market and said his group would be looking for a 10% share of the main western European markets - except Germany - by 2004.
At the same time the group is aiming to increase the number of models on offer and to boost sales from last year's 2.8m units to 3.5m by 2004.
But PSA, which recently commissioned a new plant in Brazil designed to increase its share of the Latin American market, is not planning to expand by buying other car makers. "We have no plans to change our strategy. Our goal is to continue to focus on organic growth."
The performance of PSA, which does not have a manufacturing base in the US, contrasts sharply with DaimlerChrysler which has announced preliminary figures showing that underlying profits almost halved last year.
The group, which is due to give further details of its financial performance on Monday, is coming under increasing pressure from investors to reverse the decline.
