Automotive Purchasing and Supply Chain - page 11

global view of the auto industry and is
cast more in the mould of Carlos Ghosn
than either might care to admit; both
are eloquent and charming but are also
determined and ruthlessly decisive when
required.
Shortly after his appointment,
he drew up the ‘Back in the Race’
turnaround plan. This aims for a 2%
operating margin by 2016 and $3
billion operating free cash flow from
2016-2018, modernisation of plants, a
rationalisation of the model range and
reduction of costs and inventory.
Tavares has achieved much in a
short time; by cutting costs (and staff),
improving productivity, and increasing
revenue per car, the Group’s break-even
point dropped by half a million vehicles
in his first year at the helm.
He feels some of the objectives of
the plan have been reached but there is
much more to come. “Through the full
implementation of our ‘Back in the Race’
plan, the restructuring of the PSA Group
is now complete,” he says, continuing:
“We announced this in February 2016,
all the economic objectives have been
achieved, far ahead of the schedule
we had set, and we then announced in
April this year that we would shift to a
profitable strategic growth plan called
‘Push to Pass’. So, the PSA Group is
in good shape with no debt, and it is
profitable. Our worldwide ranking in the
first half of 2016 was the fourth most
profitable automotive company in the
world.
“We are still very cautious about
forecasting the future and we need to
recognise that the European market,
over the last couple of years, has been
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