PARIS -- Jean-Martin Folz's successor will have to define new strategic goals for the troubled French automaker PSA/Peugeot-Citroen.
Last week Folz, PSA's departing CEO, announced short-term measures to cut costs and increase profitability at the automaker.
But Folz, who retires in early next year, made no mention of whether PSA would change its previous strategic goals for production volume and profit margins.
"I did not want to preempt my successor's policy," Folz told Automotive News Europe at the Paris auto show.
Previously, Folz has said that PSA's goal is to build 4 million vehicles annually. Last year the carmaker built 3.4 million vehicles. Folz also targeted a profit margin of 6 percent. In the first half PSA's profit margin was 2.4 percent.
PSA's shares rose 5 percent after Folz's September 26 announcement -- but financial analysts had differing opinions.
Adam Jonas, an auto analyst at Morgan Stanley in London said in an investors' note that the plan "clears the table" for a product-led recovery.
French investment bankers Exane BNP Paribas said: "We do not believe the measures will be sufficient to support earnings revisions on 2006 as sales in Europe have remained quite weak so far."
PSA's European sales slipped 3.3 percent in the first 8 months, according to ACEA, the European car manufacturers association. The automaker is being hit by a product trough and increasing competition from Asian brands.
You may e-mail Sylviane de Saint-Seine at [email protected]