Peugeot continues to be the brand that improves its CO2 levels with another drop during 2016.

• New car average CO₂ emissions decreased by 1.2% in 2016, with Norway responsible for the largest decrease in CO₂ levels
• Peugeot led the brand ranking, with its average emissions falling by 1.7g/km in 2016
• The data is being released as the industry prepares for the implementation of WLTP, which is expected to dramatically impact CO₂ emissions monitoring

Average CO₂ emissions for new cars in Europe fell during 2016 demonstrating the continued progress being made by the industry. 

The analysis carried out by JATO Dynamics covered 23 European markets and showed that average CO₂ emissions fell by 1.2% in 2016 - finishing at 117.8 g/km. The result was 1.4 g/km lower than the total seen in 2015, but this represents the smallest annual percentage improvement for the last ten years. 

In part this can be attributed to the slower growth of diesel registrations in 2016, which produce lower CO₂emissions.

On a country level, Norway had the lowest CO₂ emissions of all countries analysed. Incentives to increase the use of EVs and hybrids resulted in these segments accounting for 39% of the country's total registrations. Notably, the Netherlands and Denmark were the only two markets with increased average CO₂ emissions in 2016, again the major driver of change was government policy - the reduction of tax incentives in the Netherlands resulted in a 53% fall in demand for PHEVs, and increased tax rates for EVs in Denmark resulted in a 71% fall in EV registrations.

Peugeot led the brand ranking for a second year - it decreased its CO₂ emissions by 1.7g/km. This was primarily due to a lower CO₂ emission average for its petrol engines. Peugeot's top-seller, the Peugeot 208, decreased its average CO₂ emissions by 1.3g/km from 99.3g/km to 98g/km. PSA Group's other volume brand Citroën, occupied second place with 103.3g/km, which is a reduction of 2.3g/km compared to 2015. Both Peugeot and Citroën benefit from their smaller ranges of SUVs / large vehicles. Overtaking Renault in third place was Toyota, whose improvements were largely thanks to the strong performance of its hybrid range, which accounted for 39% of its European registrations in 2016. Notably, Toyota's average emissions for its hybrid range grew by 4.3g/km due to the launch of its RAV4 Hybrid.

The only brands not to decrease CO₂ emissions in 2016 were Nissan, Ford and Mazda, this can largely be attributed to the prominence of these brands with regards to particular models. A significant portion of Nissan's registrations were SUVs; the Nissan X-Trail posted an average emission of 138.1g/km and was the brand's third best-selling model. Similarly, Ford and Mazda's average CO₂ emissions increases can be attributed to increased registrations of the Mustang and MX-5 respectively.

The SUV boom dominated the automotive world in 2016, and the success of newer compact SUV models - such as the Tiguan and Tucson - helped to decrease the segment's CO₂ emissions by 6.1 g/km. The luxury cars decreased their average by 14.5 g/km, due to lowered emissions across the segment and increased diesel and PHEV registrations. The Sports segment was the only category to increase CO₂ emissions. This was due to the high volume of registrations of the Ford Mustang V8 which negated the improvements made by the BMW 4-Series, Mercedes C-Class Coupé, MINI Convertible and Porsche 911.

"It's clear that the industry is making progress: CO₂ emissions declined. The rate of decline has, however, slowed. This is due to the increased market share of gasoline vehicles and the deceleration of the growth of diesel vehicles. With WLTP imminent this is a significant year and it remains to be seen the impact it will have on emissions monitoring," commented Felipe Munoz, Global Automotive Analyst at JATO Dynamics.

The PSA Group's Push To Pass Plan is really working with improved profits, sales and cash flow.

For the third year in a row, the Group achieved growth on three fronts:

• Growth of the Automotive division operating margin to 6%^[1] versus 5% in 2015
• Growth of sales : 3.15 million vehicles sold^[2], up 5.8%
• Growth of the net financial position thanks to a positive €2.7 billion Free Cash Flow^[3] in 2016

The Group is improving its medium-term operational outlook.

For the first time since 2011^[4], a dividend of €0.48 per share will be submitted for approval at the next Shareholders’ Meeting.

Carlos Tavares, Chairman of PSA Group Managing Board, comments: “These results demonstrate our ability to consistently deliver an excellent performance in an adverse environment. 

They are the outcome of the Group’s operating efficiency improvement and our competitive teams’ focus on the execution of the Push to Pass plan. 

Day after day, the Group is building the conditions for profitable and sustainable growth, reinforced by the success of the first launches in its product offensive.”

In 2016, Group revenues were €54,030 million compared to €54,676 million in 2015 and Automotive revenues were €37,066 million, compared to €37,514 million in 2015 which represent respectively a growth of 2.1% and 2.7%, at constant exchange rates, driven notably by the success of recently launched models and the Group’s pricing power strategy. Net of adverse change in exchange rates, both Group and Automotive revenues were down 1.2%.

The Group recurring operating income was €3,235 million, up 18% compared to 2015. The Automotive recurring operating income was €2,225 million, up 19% compared to 2015. In an environment characterised by adverse exchange rates, this growth was driven by higher volumes, positive price and mix effects, and lower fixed and production costs.

The Group non-recurring operating income and expense was a charge of €624 million, compared to a charge of €757 million in 2015. 

Net financial income and expense was a charge of €268 million versus a charge of €642 million in 2015. 

Net income reached €2,149 million, an increase of €947 million compared to 2015. Net income, Group share, reached €1,730 million compared to €899 million in 2015. 

Banque PSA Finance reported recurring operating income of €571 million^[5], up 11% versus 2015.

Faurecia recurring operating income was €970 million, up 17%.

The free cash flow of manufacturing and sales companies was €2,698 million.

Total inventory, including independent dealers, stood at 406,000 vehicles at 31 December 2016, an increase of 56,000 units year on year.

The net financial position of manufacturing and sales companies was €6,813 million at 31 December 2016, compared to €4,560 million at 31 December 2015.

A dividend of €0.48 per share will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 15 May 2017, and the payment date on 17 May 2017. 

Market outlook

In 2017, the Group anticipates a stable automotive market in Europe, Latin America and Russia, and growth of 5% in China. 

Operational outlook improved

The new objectives of the Push to Pass plan are to:

-   deliver over 4.5% Automotive recurring operating margin^[6] on average in 2016-2018, and target 6% by 2021;

-   deliver 10% Group revenue growth by 2018^[7] vs 2015, and target additional 15% by 2021⁷.

^[1] Recurring operating income related to revenue

^[2] Of which 233,000 vehicles produced in Iran under Peugeot license in 2016, following the final JV agreement signed with Iran Khodro on 21 June 2016

^[3] Sales and Manufacturing companies

^[4] Dividend in respect of 2010, paid on 7 June 2011.  

^[5] 100% of the result of Banque PSA Finance. In the financial statements of the PSA Group, joint ventures are consolidated using the equity method and other activities covered by the agreement with Santander are reclassified as “Operations held for sale or to be continued in partnership.”

^[6] Recurring operating income as a proportion of revenue

^[7] At constant (2015) exchange rates

PSA Group has succeeded with it Push to Pass plan with income, turnover and profits all going in the right way.

• 6.8% of recurring operating margin^[1] for the Automotive division and 5.1% for Faurecia
• Net income, Group share, doubled to €1.2 billion
• €1.8 billion in Free Cash Flow^[2]
• Roll out has started for the "Push to Pass" plan; the product blitz and international development have been launched. The PSA Group has greater agility than ever before for continuing its profitable growth.

Group revenue amounted to €27,779 million in the first half of 2016, compared to €28,036 million in the first half of 2015 (after restatement in accordance with IFRS 5, detailed in the appendices), growth of 2.4% at constant exchange rates. Net of the unfavourable changes in exchange rates, it is down by 0.9%.

Automotive division revenue amounted to €19,190 million, also up 2.5% compared to the first half of 2015 at constant exchange rates, attributable to the success of the models and the pricing power strategy. Net of the unfavourable changes in exchange rates, it is down by 1.1%.

Group Recurring Operating Income amounted to €1,830 million, up 32% compared to the first half of 2015. With Recurring Operating Income of €1,303 million, the Automotive division grew by 34% compared to the first half of 2015. This growth is buoyed particularly by increased volumes^[3], as well as the continued reduction of fixed costs and production costs.

Non-recurring operating income and expenses amounted to -€207 million, compared to   -€343 million in the first half of 2015.

Group net financial expenses fell by half to -€150 million, compared to -€334 million in the first half of 2015.

Group consolidated net profit amounted to €1,383 million, up by €663 million. Net income, Group share, is €1,212 million, compared to €571 million in the first half of 2015.

Banque PSA Finance reported Recurring Operating Income of €297 million^[4], a rise of 1% compared to the first half of 2015.

Faurecia's Recurring Operating Income amounted to €490 million, an increase of €106 million compared to the first half of 2015.

Free Cash Flow of Manufacturing and sales companiesamounted to €1,846 million, driven by improved funds from operations.

Total inventory, including independent dealers, stood at 399,000 vehicles at 30 June 2016, up 8,000 units from end June 2015.

^[1] Recurring operating income to revenue

^[2] In the first half of 2016, for Manufacturing and sales companies

^[3] Excluding China

^[4] 100% of the results of Banque PSA Finance. In the financial statements of the PSA Group, the joint ventures are accounted for at equity, and the other businesses covered by the Santander agreement are reclassified under "Operations held for sale or to be continued in partnership".

The Manufacturing and sales companies' net financial position at 30 June 2016 was a positive €5,972 million, up €1,412 million on 31 December 2015.

Market outlook

For 2016, the Group expects the automotive market to grow by about 4% in Europe and 8% in China, and to shrink by around 12% in Latin America and 15% in Russia.

Operational targets

The Push to Pass plan, unveiled on 5 April 2016, sets the following targets:

• Reach an average 4% automotive recurring operating margin in 2016-2018, and target 6% by 2021;
• Deliver 10% Group revenue growth by 2018¹ vs 2015, and target additional 15% by 2021¹.

Carlos Tavares, Chairman of the Managing Board of the PSA Group, said: "Our continued performance reflects the success of the company's structural transformation, its efficiency, and the profound change of spirit within the Group. In a changing environment, all our teams are focused on operational excellence and continue to demonstrate their agility in deploying our Push to Pass strategic plan."

Financial Calendar - 26 October 2016: 3^rd Quarter 2016 Revenue

The PSA Group's consolidated financial statements at 30 June 2016 were approved by the Managing Board on 22 July 2016 and reviewed by the Supervisory Board on 26 July 2016. The Group's Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

Next generation of vehicle interior experience previewed with the new PEUGEOT i-Cockpit®.

• Next generation of vehicle interior experience previewed with the new PEUGEOT i-Cockpit^®
• More than 2.2 million people drive a PEUGEOT model with the current generation i-Cockpit^®
• The new design introduces total sensory stimulation for an enhanced driving experience

PEUGEOT is today revealing its vision of tomorrow's driving environment with the next generation of its innovative and hugely popular i-Cockpit^®. Technological advances have enabled improved comfort and safety with advanced sensory engagement for drivers and passengers of the next generation of PEUGEOT models.

The exclusive preview showcases the brand's new interior design direction for future models, with advanced ergonomics, head-up digital instrument displays and interactive touchscreen technology all designed to enhance the driving experience.

The new i-Cockpit^® will feature on the next generation of PEUGEOT models following the highly successful launch of the concept in 2012. In the past four years, it has been used on the brand’s three best-selling models, including the 208, which was renewed and re-energised last year, the 2008 SUV, with the latest version revealed at the 2016 Geneva Motor Show, and the 308, PEUGEOT's overall best-selling model.

The new design retains all of the existing features and benefits that the 2.2 million global users of the current generation of the PEUGEOT i-Cockpit^®, fitted on PEUGEOT 208, 2008 and 308 models, have come to know and love. Following intensive studies by PEUGEOT – with customers across Europe and China agreeing that driving a PEUGEOT i-Cockpit^® vehicle is a rewarding, stimulating experience – engineers and designers were able to make a number of improvements to intensify the experience.

Using a full scale reproduction of the front passenger compartment, PEUGEOT engineers and designers were able to produce and develop the new i-Cockpit^® design in a genuine setting, refining the design and features from the perspective of the drivers and passengers of future models.

Following feedback of current PEUGEOT users, engineers started with the steering wheel. It’s re-design will provide driver's with an even greater field of vision and more leg space for additional comfort. The wheel itself is now even more compact and offers more agility and manoeuvrability with improved driving sensation.

Driver’s arms are now closer when holding the steering wheel, reducing the breadth of movement required during manoeuvres, thus making the car more responsive and agile for the driver, with an improved, more relaxed driving position.

Building on the elevated instrument cluster of the current generation i-Cockpit^®, PEUGEOT engineers developed a new head-up instrumentation display, with a 12.3’’ high-resolution digital screen taking pride of place on the dashboard. Positioned in the driver’s line of sight, the large screen clearly displays all critical information to drivers within the field of view, enabling more information to be read easier and quicker. This removes the need for drivers to look away from the road, enhancing driving safety. 

PEUGEOT designers have taken full advantage of a new 12.3’’ screen, developing bespoke futuristic graphics for drivers and passengers, further enhancing their ‘in-cabin’ experience. The display is fully customisable with each configuration heightened with animations and transitions.

Passengers will also note the new tablet-like 8’’ touchscreen in the centre of the instrument panel, which has been improved over the current in car infotainment system. New interactive technology has increased responsiveness and made it simpler to use.

The next generation i-Cockpit^® will also enjoy features including 3D navigation, available on both of the information screens, with real-time traffic information from Tom Tom Traffic. Connected to voice recognition and commands enables hands-free device control, with useful features like automatic text message management reading, drafting and sending messages hands free. The central screen also features Apple CarPlay™, Mirrorlink^® and Android Auto technologies.

All of the new technology and features are set in a new centre console, which has been designed to be elegant yet practical. Indeed, all driver and passenger senses will be engaged by the new i-Cockpit^®.

Those sat behind the new streamlined interior will note the lack of buttons, choice of high-grade materials and premium build quality. The result is improved driving pleasure, agility and driver concentration.

The design is visually appealing, with the experience intensified through lighting and an inner chromatic atmosphere as well as the digital elements on both of the infotainment screens. To the touch, occupants will also notice the seats offering multipoint massages, the enhanced build quality of the dashboard and high quality material choices that surround them.

Accompanying the visual and tactile element, musical atmospheric settings provide an audible experience like no other, while the inbuilt fragrance diffuser provides the final sensory stimulation for occupants.

Almost all of these senses can be tailored to occupant taste, with two atmospheric settings offered as standard; ‘Boost’, for dynamic driving, and ‘Relax’, for a calmer driving experience. Both settings are completely customisable, making it possible to make on-board experiences of drivers and passengers unique, engaging and unforgettable all thanks to Peugeot’s new i-Cockpit^®.