Press release
349KB
june 20, 2016 - PSA
Peugeot Citroën Racing Shop PSA Retail and PSA Motorsport form a strategic partnership to expand production racing
Peugeot Citroën Racing Shop will combine the skill sets of #psa Retail and #psa Motorsport to pursue an ambitious production racing strategy.
The purpose of this strategic partnership, headquartered in the Paris suburb of Gonesse, is to provide a premium service to sports customers of #psa Group brands, offering them a highly effective way to enhance their image.
Production racing covers four broad areas of activity:
- vehicle design and development;
- supply, storage and distribution of production racing products;
- technical support for vehicle marketing and operation;
- racing promotion.
Under the partnership, #psa Motorsport will concentrate on vehicle design and development, focusing its know-how squarely on the core business of winning or enabling customers to win all the motorsports events they enter. It will also focus on promotion.
PSA Retail will contribute its skills in trade and spare parts business and in pan-European logistics in order to support the other three areas of production racing.
Synergies to generate operational efficiency and benefit end-customers
The partnership has pinpointed synergies that will make the motorsports business more operationally efficient, thus benefiting end-customers in several ways:
- Production racing spare parts activities will be brought together at the same facility. At the operational level, this should make it possible to share and rationalise inventory and to make purchasing more competitive through bulk procurement. For customers, the expected payoff will be higher service levels and greater satisfaction.
- The marketing department will be enlarged to strengthen the three brands' presence in sporting events and to boost sales volumes.
- Technical assistance teams will be amalgamated, thus pooling know-know and centralising direct feedback in order to respond faster to product development requests.
- The other inherent benefit will be easier access to after-sales service, thereby increasing customer satisfaction during competition weekends.
Production racing is an entire economy
Production racing is more than just a sport and a passion; it is an entire economy.
Peugeot Sport and Citroën Racing have distributed 644 complete racing car kits over the past five years, generating revenue of more than €72,000 per kit (averaged across both brands' sales).
Sales revenue from spare parts for track and rally racing is estimated at more than €20,000 per car, per annum, given that large numbers of parts need to be replaced during the season as a result of intense mechanical stress.
Under the product plan for production racing, a new vehicle will be developed each year. Going forward, this should result in a steady and sustained workload for #peugeot Citroën Racing Shop's Gonesse facility.
Blending the very best expertise of two complementary entities to serve demanding customers
The recently formed #psa Motorsport division blends the expertise and know-how of PSA's three motorsports entities: #peugeot Sport, Citroën Racing and DS Performances.
Citroën Racing has been winning top-level competition titles since 1919, and #peugeot Sport since 1895. DS Performances is now directing the DS brand’s future in motorsports through the participation of DS Virgin Racing in the World Formula E Championship.
In addition to their motorsports programmes, #peugeot Sport and Citroën Racing develop and sell vehicles for production racing.
PSA Retail, the retail sales arm of #psa, is the Group's first point of customer contact.
With cutting edge know-how in four business areas – new vehicles, second-hand vehicles, aftersales and spare parts – #psa Retail sold more than half a million vehicles in 2015, generating €7 billion in revenue. It operates in 11 European countries, with some 300 end-customer outlets.
PSA Retail's spare parts business makes it a key player in France and the rest of Europe, with revenue of €1.3 billion in 2015. A plan to expand the business is being rolled out, with a view to creating 40 spare-part distribution hubs across Europe.
The fit between #psa Motorsport and #psa Retail for developing production racing was apparent from the start, prompting the formation of #peugeot Citroën Racing Shop.
Inherent qualities of the Gonesse facility
The #peugeot Citroën Racing Shop facility at Gonesse comprises 4,695 square metres of warehouses and 680 sq.m. of office space. As well as replacing the two spare parts storage sites currently used for production racing, #peugeot Sport facility at Vélizy and Citroën Racing site at Satory – Gonesse will have a residual storage capacity commensurate with the ambitious underlying strategy to develop production racing.
The new facility is ideally located at the heart of a logistics platform close to Paris's Roissy-Charles de Gaulle airport and to one of Europe's largest road transport hubs. Supplies can thus be shipped quickly anywhere in France and also to European and intercontinental destinations. This is an obvious advantage for a business with broad international ambitions.
In addition, the facility will have 10 loading and unloading bays to enable smooth turnover and rapid transit of the 10,000-plus parts that it will handle when fully operational.
Jean-Philippe Imparato, Vice-President of #psa Retail, said: "PSA Retail is delighted about the partnership with #psa Motorsport. #peugeot Citroën Racing Shop will set the operating standard in terms of service quality and supply for private motorsports customers. The demands inherent in motorsports will help raise #psa Retail's operating standards, generating indirect benefits for customers at our 300 sites".
Jean-Marc Finot, Vice-President of #psa Motorsport, said: "This partnership is very important for developing our brands' production racing activity. It will allow #psa Motorsport to focus totally on its core business and winning culture, while offering higher levels of service to a great many private customers".
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