PSA Prepares for Changing World With Mix of New Powertrain Technologies

PARIS – PSA Peugeot Citroen is developing everything from electric scooters to electric cars today, but it is persuaded plug-in hybrids are the right way to use electricity for transportation in the future.

Plug-in technology “represents in our view the real solution in terms of the use of electric energy by the public at large,” says CEO Philippe Varin in a speech to the Automobile Club of France. “This technology allies the advantages of a diesel on the highway and electric propulsion in the city.”

French auto makert to launch first diesel hybrids this fall.

As for the most efficient way to reduce carbon-dioxide emissions while maintaining autonomy, he says PSA will develop regular hybrid powertrains with joint-venture partner BMW.

“We share in effect the same vision, which is this: Of all the new technologies in the course of development, hybrids will be for the next decade the solution that offers the best balance between CO2 reduction and range.

“As automobile manufacturers, we are convinced that we must contribute starting now to the creation of an open European hybrid-technology supply chain with its own standards.”

PSA anticipates reaching volumes of 100,000 hybrids and plug-ins annually sometime after 2015. Meanwhile, the auto maker will introduce its first diesel hybrids this fall – the Peugeot 3008 HY4 and Citroen DS5 HY4.

The hybrid partnership with BMW “is a decisive way to keep our advantage against the competition of new auto makers,” Varin says.

“While many people worry about a possible de-industrialization of Europe, we reaffirm this way our determination to keep an innovative automobile industry here.”

Varin prioritizes his company’s powertrain future by outlining here the need for PSA to find its place as a producer of mobility, rather than a producer of automobiles.

He cites trends such as the Asian economic boom, urbanization, an aging population and the problem of future fuels as changing the role of the automobile.

PSA, Varin says, is trying to prepare for a changed world by developing services such as “Mu by Peugeot,” which rents cars, scooters or baby seats, as well as with new telematics being offered in its cars.

The auto maker funds an institute that studies the changes in cities, and it has a variety of research partnerships with universities in France and elsewhere.

PSA must prepare for change because by 2020 only 85% of light vehicles will have traditional gasoline or diesel engines, Varin predicts. For them, PSA is developing 1.0L and 1.2L 3-cyl. gas engines on its own, bigger gas engines with BMW and diesels with Ford.

For the 15% of the market that is hybrid, plug-in or electric, PSA counts on learning by doing. It will make prototype plug-in versions of its hybrid vehicles in 2012 and is working with Mitsubishi on electric versions of its utility vans.

PSA also is conducting its own studies to learn how people will use these alternative-propulsion vehicles, including:

Varin also outlines PSA’s support of research activities with universities and a 10-year-old institution that studies the future of cities. Urban planning is becoming the essential element of future mobility, he says, in which many ways of moving about are linked together.

“One can imagine a continuity of mobility services across borders,” Varin says, “thanks to contracts between operators, as in the telecom industry, to assure the best fluidity or seamless co-modality and ‘mobility-roaming,’ as our young city dwellers say.

“For the manufacturer of cars that we are, the whole game is to succeed in adapting our products and services and to find our place in these new partnerships, be they public or private.”