The factors in favour of a rise in the PSA share price:
The PSA group's first asset is of course its position on the national and European market. Indeed, the company enjoys a leading position in the automobile manufacturing sector in France and is number two on the European market just after the German group Volkswagen. The Group also ranks seventh in the world in this sector, thanks in particular to its diversified ranges with the Peugeot and Citroën brands for the mid-range and DS for the top end, and to the diversification of its activities through its subsidiary Faurecia, which specialises in automotive equipment. The Group also offers financing services.
In recent years and after going through a period of major crisis, the Peugeot-Citroën group has managed to become more competitive at the industrial level. It has modernised its production sites with modular platforms, reduced the number of vehicle models and increased the utilisation of production capacity. Differentiating its three main brands with the DS premium brand now gives it a better marketing positioning in the various segments.
The PSA Group also benefits from an avant-garde strategy with regard to the current issue of energy savings, particularly with regard to its small vehicles, which places it at the forefront of innovations in this area of the future.
The positioning of the PSA group on different markets from a geographical point of view is also interesting. Indeed, the company retains a strong position in Europe where it still achieves more than 2/3 of its sales but is also very well positioned in China, a buoyant market par excellence and in South-East Asia where it now achieves nearly 19% of its sales. A fourth plant was built in this area in 2016 with the aim of building no less than 1.5 million vehicles by 2020.
The PSA Group's innovation capacities are also to be counted among its assets. Indeed, in France, PSA is today the first patent applicant, which ensures a strong positioning in the future.
As explained above, PSA is diversifying its activities with, in particular, corporate banking services. Its recent alliances with the Santander and Consumer Finance groups and companies in this sector enable it to further improve profitability in this area and expand its market to Spain, Brazil, Switzerland, the Netherlands and Italy.
We will also keep a close eye on the impact of the alliance that PSA has set up with the Bolloré group for the design of an electric car-sharing vehicle to be distributed by the Citroën subsidiary but developed by PSA.
Lastly, after a temporary halt, the dividends have been distributed again by the group since 2017.