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DPCA, which has been established for 27 years, is a joint venture between French automobile giant PSA Group and Dongfeng Motor Company. It is one of the earliest joint ventures in China. With internal problems highlighted and market competition intensified, Citroen's sales have declined one after another and profits are under pressure. Peugeot and Citroen have become marginalized products in the market.

A few days ago, DPCA held a media communication meeting in Beijing. Luo Sibo, the new general manager, and Li Jun, the executive deputy general manager, gave a detailed account of the Dragon's existing problems and transformation and development plan.

Massimo ROSERBA, who officially came to China from France this year as the new general manager of Dragon Motor Co., Ltd., said at the meeting that the biggest problem with DPCA lies in the construction of the brand, unclear positioning and marketing deviation. "the Chinese market is of course the most important market for PSA Group in the world," Rothbo said. "although we have made some mistakes before, PSA still attaches great importance to the Chinese market. The current performance, the product itself is not a decisive factor, and the price positioning is not very different from the European market. Our mistake is that we did not correctly communicate with you what products PSA is selling and did not tell the brand story."

Li Jun, deputy general manager of Dragon Executive, said, "recently, through communication with various channels, we do feel that DPCA has problems in the whole value chain, such as strategy, planning and brand marketing. What we really need to solve now is how to survive and find ourselves in the changing market situation."

Li Jun also believes that Peugeot Citroen has its unique product positioning, to find the direction that has been done well, to avoid repeating the same mistake, DPCA still has a chance.

DPCA puts forward four optimization points, including the change of ideology and culture, the improvement of organizational efficiency, the improvement of personnel ability and the change of marketing strategy. Among them, for some time in the future, "marketing" will become the core task of the Dragon.

In terms of products, DPCA plans to launch 116 new products by 2021, maintaining the rate of at least one new model for each brand each year. At the same time, it will also focus on solving the weight problem, improving the brand reputation and reshaping the image.

In 2019, the planned Dongfeng Peugeot 508L (R83c) and Citroen's new C3-XR (M44R) have been put on the market, and there are no new products on the market. It means that Dragon will focus on optimization at the internal, marketing and dealer level.

At the dealer level, Shenlong will also enhance the terminal network capacity, formulate scientific business policies, ensure the profitability of the network, and rebuild cooperation trust.

In the first quarter of this year, DPCA delivered only 38000 new cars, compared with a target of 235000 this year.

In terms of performance, DPCA sold only 253400 cars in 2018, down 32% from a year earlier and the lowest level in a decade, peaking at 711000 in 2015. At the same time, in 2018, Dragon achieved an income of 3.652 billion euros, a decrease of 32.5% year-on-year, and a loss of 468 million euros (about 3.55 billion yuan).

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