“We have no plans to go retro in our future vehicles”
On his new CEO job since the beginning of February, Alain Favey takes the helm of Peugeot after three decades in the industry: 20 years at Citroen, then in different brands inside the Volkswagen Group (VW, Porsche, Skoda and Bentley) and then nº1 of the Europcar mobility group (also part of Volkswagen). In this first interview as Peugeot’s leader, he outlines the short and midterm future for the French car brand.
As an industry executive veteran, what was your first perception about Peugeot’s situation when you started as CEO just a couple of months ago?
Alain Favey: I think Peugeot is in a very positive situation and I am optimistic about its future despite the challenges ahead. The multi-energy strategy has proved to be the right strategy for Stellantis in general and for Peugeot in particular, as the transition to e-mobility is and will take far longer than the optimistic visions anticipated. I also see a lot of new ideas inside Peugeot so that we are able to continue our centennial tradition of being innovative. Our i-cockpit was a major breakthrough in terms of interior design and has evolved from its first version, the exterior design of our cars is arguably one of the most daring among mainstream car brands in Europe. Also, in terms of customer care we are very focused to make the difference in initiatives like the “Allure care” through which we are leveraging the customer’s faith in electric vehicles by granting them the 8-year warranty for BEV in most European countries.
In the recent past, Peugeot has faced some powertrain quality issues which can harm your customer’s trust. Are you already tackling this serious issue?
Alain Favey: That is the first element I have focused my attention onto, as the unusual quality problems we had in the last few years with some of our powertrains may jeopardise everything else we have been doing well. And that’s why we extended the warranty on the Puretech engines to 10 years so that we may win back the customer-base confidence. We are reconnecting with customers, dealer network, suppliers, media, etc. That’s vital to reaffirm Peugeot’s French panache, roots and culture which are our essence.
What can we expect in terms of product pipeline in the next few years?
Alain Favey: The 3008 and 5008 line-ups are being extended with the addition of the new generation plug-in hybrid powertrains which will be instrumental to bridge the brand until the EV are here for good. The 5-seater 5008 is coming also very soon, complementing the 7-seater which was launched from day 1. On the other hand, I am in position to confirm that we will reintroduce the GTI badge on the e-208 range with all its charisma and sub brand values that are so dear to us. It’s our way to show that we will continue to embody motorsport on the road even with electric powertrains. And the facelift of the 308, later this year, will be also a milestone for us. Also, in the second half of 2025, we will showcase a very important concept-car which leaves very strong hints about the evolution of our design language.
So that means you believe there is space for the GTI badge even in a world of EV?
Alain Favey: We believe the GTI soul can also live inside an electric car, yes. We will start with the 208 – already in the current generation car – but there might be other applications that are not yet in our pipeline.
As Peugeot improved its brand image, it seems that you could venture into a higher market segment. Is that in your agenda?
Alain Favey: As we see ourselves as an upper mainstream car brand it definitely makes sense to look into the top C or even D segment and find the Peugeot formula to do that.
Going to the opposite end of the market spectrum… what is Peugeot’s answer to Renault, Citroen and the Chinese brands that are coming now with the first 20 000 to 25 000 EV? And will the future 208 be your first car with just an electric version?
Alain Favey: The 208 successor is still two years down the road and its still early days to provide more detailed information. It will be launched as a BEV, yes. And we are already present in the sub-30 000-euro BEV market segment with the current e-208 (note: Peugeot reduced the price of the e-208 by 6,000 euros to 28,000 euros, still above the most affordable new EV from the competition but a car with more quality, more space and longer range).
Peugeot increased EV sales (by 11% to 83 000 units) in 2024, but the e-208 and the e-2008 are slowing down (-23% and -10% vs 2024, respectively), which is normal due to the lifecycle. You have stated that Peugeot wants to be the mainstream EV brand in Europe. Can you quantify what that means and is the fact that those two best-sellers are fading out jeopardise your EV growth plans before 2027/28 when the successors e-208 and e-2008 are likely to be launched?
Alain Favey: Our goal is to boost EV mix and target leadership on our segments in the European EV market which means a full focus on performance in terms of sales, market share, and customer satisfaction This involves not only increasing the number of EVs sold, but also offering a wide range of appealing electric models that cater to various customer needs. The market share and EV share will be a consequence of how well we do our job and how much the charging infrastructure develops.
But what about the A-segment, between 10 000 and 17 000 euro, which used to be quite relevant in Europe and almost vanished in the last five to ten years? No successors for the 106/107/108?
Alain Favey: The 208 is our entry level car and we have no intention to go below that market segment which basically disappeared. That customer is now being served basically by our initiatives in the used-car market which we have increased considerably. For Peugeot, the future of the new car market starts at a higher price level with more modern state of the art vehicles.
The 3008 and 5008, on the other hand, are going full steam ahead, with over 30% sales increases in Q1 of 2025. Most likely, you will reduce sales volumes and enjoy higher profit margins which is not a bad place to be at…
Alain Favey: The C-segment is vital for us and as the 3008-5008 ranges are being spread sales figures resonate that, naturally. This will be true in the next many months and will bring us a positive momentum.
You mentioned tradition and innovation during this interview. And this coexistence can clearly be seen in the GTI brand and the French panache you want to inject in your cars which cross with some futuristic tech like the hyper-square steering wheel and other technologies. Will we see Peugeot going retro at some point under your leadership, just as your competitors Renault have gone with the R5 and R4 but also Fiat which used the Panda nameplate equity in a quite different way it did in the past?
Alain Favey: Peugeot has always been about evolution, disruption but all with the brand’s values. If you go to our museum, you really see the Peugeot family started to produce steel parts, saws, pepper grinders, bicycles and, of course, cars. At Peugeot, historically, we always nurtured our good ideas and products and leveraged them to the best possible use. But with no drastic disruptions. We have no intention at this point in time to go retro because we believe there are far better ways to pay homage and benefit from the legacy that makes Peugeot what it is.
What is your view on the more flexible EU CO2 targets that you now may comply to two years later than originally planned? Did the news about this higher flexibility cause any strategy adjustment for you?
Alain Favey: Well, there is no change in the CO2 emission figures we have to reach, it is just the timeline that has become more flexible. That also came in-line with what the charging infrastructure is right now and the development it needs so that the EV becomes the rule rather than the exception.
