PSA/Peugeot-Citroen CEO Carlos Tavares wants the company's upscale Citroen DS product line to become a stand-alone brand that can compete with Audi, Mercedes-Benz and BMW. Market watchers, however, have mixed views on whether the ambitious plan will succeed.
Commerzbank analyst Sascha Gommel is bullish about the move. "Spinning off DS as a separate brand, which they are already doing in China, is a move that would absolutely make sense," he said. Florent Couvreur, an analyst at CM-CIC Securities, worries that PSA would have to wait a long time until it sees a substantial return on its investment. "It could take 15 to 20 years for DS to become a profitable premium brand like Audi, BMW and Mercedes," she said.