Peugeot to cull models as it targets return to profitability

Peugeot Citroen, Europe’s second-largest carmaker, has outlined plans to cut its model lineup by almost half and turn the Citroen unit’s DS vehicles into a separate brand in a bid to restore car division’s profit.

The carmaking unit’s operating margin will amount to 2% of sales by 2018, with the figure rising to 5% in the 2019-2023 period, chief executive Carlos Tavares said yesterday in his strategic review of the Paris-based company.

Tavares, 55, became head of Peugeot at the end of March to guide a reorganisation after cumulative net losses exceeded €7.5bn in the past 2½ years.