“This company has the potential to become a global car company,” Tavares said during a conference call with analysts, as quoted by Bloomberg.
The executive, a Renault veteran, suggests the company will focus on a smaller number of models that will “scare” the competition as they arrive on the market in the coming years.
The turnaround is said to require a significant boost in research-and-development spending. With current R&D spending slightly below the industry average, Peugeot has failed to keep up with competitors in the European market and abroad.
The Chinese investor also plans to expand cooperation and form a strategic partnership, though full details aren’t expected to be revealed until a formal agreement is established in March. The Chinese automotive market represents one of the largest in the world and continues to grow at a much faster pace than Europe or other regions.
The rescue deal has yet to be approved by the European Union and shareholders, though Tavares is confident that it will proceed as planned.
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