What complete his agenda for the next 10 years

"It must be both tree and canoe," said the African wisdom, takes root in its values but to register in the movement. The history of Peugeot is written to this paradox. Taking part this week in his last world of the automobile as a pattern of PSA Peugeot Citroën, Jean - Martin Folz will be thinking of Jean-Pierre Peugeot, the distant founder of the dynasty, born under Louis XV, and embarked on the adventure of the steel in the early 19th century

In ten years of faithful service, it will in his own way he also transformed the venerable company opening to the world at the point where survival depended on. Then, it is surprising that at the dawn of his sixty years he feel the need to witness a moment where maps blur in this tumultuous sector

His successor, which is for the moment that Mr X, find a comfortable, well organized, but threatened office early next year. Since 2003, the brilliant performance of the eighth World Builder get blunt. Sales, which had exploded during the first eight years of the era Folz, stagnate again and plunges the margin. On the table, a few small shirts with evocative names: range, international, perimeter, alliances... What complete his agenda for the next 10 years.

He can already begin by thanking his predecessor for his three fundamental success: on the industrial tool, international expansion and the policy of alliances.

The first and the most spectacular feat of Jean-Martin Folz was to realize that were thought impossible: the true fusion between competitors always, Peugeot and Citroen, twenty years after the official deed of marriage! This it totally changed the Organization of the company, men in the factories. With a simple principle: two brands, a company. Other words, only what the client perceives (bodywork, interior decoration, options, trading network) must be different, and even more different as possible. The remaining engines, mechanical and electronic components, chassis, mills, 60 of the cost of the car, must be shared. Result, more than three "platforms" on which all the cars of the two marks will be soon built. With specialization of plants by platforms and by marks or even models. A revolutionary streamlined which contributed to the dramatic improvement in the margin of the constructor. As this work has doubled output of the models of the two marks calendar cleverly offset to avoid any risk of cannibalization and smooth the phenomenon of aging products.

The second contribution of the era Folz has been international expansion, greatly assisted by the policy of platforms. Eastern Europe, Latin America and China were the three lots of conquest privileged with each time the settlements of plants. Europe sales now represent almost 30 of the turnover.

Finally, the pattern of PSA, allergic to large mergers in this trade, embarked on an ambitious policy of ad hoc alliances with competitors to expand its logic of platforms and cost savings. Already combined with Renault (engines and boxes) and Fiat (utilities), he agreed with Ford and BMW engines and with Toyota, and more recently Mitsubishi in specific models (small cars, 4 x 4).

Beautiful work, really, but that the current context makes now insufficient to meet the future challenges that threaten all the large European generalist manufacturers. They are of three orders.

First of all, the European market stagnates desperately for three years and its level is now lower than in 1999. And even if individuals are the way of concessions through new models, it is unlikely that this market is relentless growth. "It is more cyclical, it found its asymptote," as say engineers.

Second danger which lurks, one that the Anglo-Saxons named "market squeeze." In other words, the risk for general practitioners to be taken into tenaille between on the one hand the aggressive competition of Koreans and soon the Chinese in the lower range and the other luxury brands, such as Mercedes, BMW or Audi, who come hunt with GPS authors the most models in each segment (small, medium and large), and therefore the most cost-effective. All of this then as generalists, particularly Renault and PSA, toil in the top of range.

Third danger finally to SAP, it is totally absent from the most important and probably the most profitable market for manufacturers in the world, North America. It is obviously paradoxical if one looks at the difficulties in which struggling us manufacturers, but yet it is the first post of profit for Toyota, Honda and Nissan. This market is all the more interesting it is changing in nature, switching to more small, fuel-efficient, vehicles more "European", sort of. A phenomenon which, in addition industrial excellence, explains the good financial performance of a Toyota... and it gives muscle to tackle emerging promising but unprofitable country.

In the "range" shirt, Mr X can be found a flattering launch programme which should give a young with the average age of the models to 3.3 years in 2008 against 4.5 currently has a mechanical effect on performance. But it will be necessary to go further out of the trap of "market squeeze": find a solution on top of range, broadening alliances to more models...

Finally, to rebalance a geographic positioning still too European, it must seriously ask themselves the question of a perilous return to America. Without neglecting to strengthen development in China, now become first market of the world in number of sold cars.

To clear the financial means by all these strategic movements, could not avoid finally open the third shirt, one that concerns the perimeter. Keep equipment manufacturer Faurecia, already very independent at a time of high concentration in these major suppliers Last file the more explosive: to achieve its purposes, should it go to integrate in its consolidation of the auto market thinking and therefore to consider that point another alliance Of course, marriages the most famous, as one between Daimler and Chrysler, have turned to disaster and the most powerful of all general practitioners, Toyota, have never bought person. But the Renault-Nissan marriage shown another way, like Air France did in the air with KLM, against the advice of everyone. And indeed, the pioneer is called Peugeot well. If it took him twenty years to absorb Citroën, he demonstrated that it is possible, provided that the method. That knowledge be like the African wise both tree and canoe.