PSA CEO defends new targets; demands pricing discipline over volume

PSA Group CEO Carlos Tavares is a firm believer in under promising and over delivering. This became evident after he took charge at struggling PSA in 2014. His Back in the Race five-year plan gave his team targets that Tavares considered challenging, while many people outside the company said they were much too conservative. PSA easily surpassed those goals in two years. That left Tavares with an enviable problem: He needed to give his team new objectives. PSA's Push to Pass strategy announced last month tripled the automaker's profit target to 6 percent, but that goal also appeared underwhelming to many given that PSA posted a 5 percent margin in 2015. Tavares discussed the new plan with Automotive News Europe Editor Luca Ciferri.