PSA - 2019 Universal Registration Document

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2019 AND OUTLOOK Investment in research & development

Groupe PSA technological response 4.5.2.

CLEAN TECHNOLOGIES  DPEF.16  4.5.2.1.  DPEF.24   DPEF.27  Approximately40% of Groupe PSA’sR&D budget is dedicatedto developingtechnologiesto improve the environmentalefficiency andperformance of its vehicles. Concerned to adopt a sustainable mobility approach (see Section 2.1.2)and to meet the challengeof energy transition,the Grouphasmadethe “cleancar” a strategic focus of itsR&D. New electric powertrains 4.5.2.1.1. To meet the challengesof the energy transition,Groupe PSAhas committedto an electrificationoffensive of its vehicles, defining cleartargets: from2019 onwards,every newmodelproducedwill be available n in an electric orhybrid version; in 2021, half ofall models marketed will includean electric version; n by 2025, all modelsmarketedby Groupe PSA’sfive brands will n havean electric version. This goal is possiblebecauseall of the Group’spassengercars are being developedon two multi-energyplatforms:EMP2 and CMP (seeSection 4.5.1.1). Thanks tothismulti-energy design: the combustionand electric versions of the same model are n producedon the sameproduction line; this allowsGroupe PSAto adapt nimblyandflexiblytomarketchanges; the electricversionsoffer cabin space, boot space and a calibre n of equipment identicalto the combustion versions. Fully electricvehicles Groupe PSAis introducingits new generationof fully electriccars on the DS3 CrossbackE-Tense, Peugeot e-208, Peugeot e-2008 andOpel Corsa-e,which offer: rangebetween320and340 km(WLTP); n full charge in 8 hourswith a home Wallboxand 80% charge in n In addition, in 2020 the Group will be introducing fully electric versions of its compact vans with the Peugeot Expert, Citroën Jumpy, OpelandVauxhallVivaro. By theendof 2021, Groupe PSA will release12 fullyelectric models. The plug-in petrol hybrid Groupe PSA’splug-inpetrol hybridwas rolled out in 2019 with the DS7 CrossbackE-Tense,Peugeot3008Hybrid& Hybrid4,Peugeot 508 Hybrid and 508 SW Hybrid, Opel and Vauxhall Grandland X Hybrid4 andCitroënC5Aircross Hybrid. Thesevehicles,availablewith two- and four-wheeldrive, have total power of 300hp in the four-wheeldrive version and 224hp in the two-wheeldrive version.This enables: approved CO 2 emissionsbetween29 and37g/km(WLTP); n rangeof up to 59km(4x4)and 56km(4x2)in fully electricmode n (WLTP); 30 minutes ona publicfast charger(100kWDC); acceleration from 0 to 100km/h in 8 seconds. n

full chargein 7 hourson a homechargingstationand in 1 hour45 n minutes on a fast charger; accessto “low-emissions zones”;drivingin ZEVmodeis indicated n by a bluelightunderthe interior rearview mirror; acceleration from 0 to 100km/h in 6 seconds (4x4). n By the end of 2021, Groupe PSA will release 11 plug-in hybrid models. Micro andMildHybrid Stop & Start (micro-hybrid) technology has been used in Groupe PSAcars since2004. The48VMildHybridwill be introduced in 2022.Thisnewgeneration of electricinternalcombustionengineswill reduceCO 2 emissionsby around15% comparedto a vehiclepoweredentirelyby an internal combustionengine. Optimisation of internal combustion 4.5.2.1.2. engines Groupe PSApossesses a range of high-performing powertrains. Among petrol engines, the 3- and 4-cylinder PureTech family n (formerly THP) is particularly efficient from the standpoint of consumption,weight andemissions. The 3-cylinder 1.2l turbo version received the International n Engineof the Year award in its categoryfor four consecutive years, from2015to 2018. The new generationof petrol engines was launched in 2017. n Intendedto conquerworld markets,this range complieswith the Euro 6d-temp standard (which came into force on 1 September2018 for all vehicles) and, furthermore,with the more stringent Chinese China6b standard. The EC engine family (four-cylinderatmospheric),rolled out n across all regions,completesthis range of Groupe PSApetrol engines. For diesel engines, Groupe PSAhas followedthe most efficient n technologicaloptions,ratherthanthe leastcostly. SCR (Selective Catalytic Reduction), the most effective n technologyfor reducingnitrogenoxides(No x ), is usedon all of Groupe PSA’s BlueHDi dieselengines. Thenewgenerationof 1.5 BlueHDiengines,whichwasrolledout n in 2017, abides by an RDE conformityfactor of 1.5 on No emissionseven though this value will not be mandatoryuntil 2020 (thecurrent required factor is 2.1). Groupe PSAalso sells a range of high-performancegearboxes n that in 2018 was expandedwith a new automaticeight-speed gearbox(EAT8) that reduces vehicles’consumptioneven more drastically while offering better driving comfort. Lastly, Groupe PSAdevelops engines that are compatiblewith n alternative fuels (see CSR Report – 2.1.2.4). In Latin America, Groupe PSA’smodels are equippedwith flexfuel engines (100% bioethanol); a GPL version of the 3-cylinder Puretech engine (atmosphericversion) was developedin 2017. Activities in the field of alternativefuels have been strengthenedthanks to the expertiseof the Opel Vauxhallteams. As such, the “Alternative fuels(LPG,CNG)”skills centrewas awardedto the R&Dteamsat Rüsselsheim in November 2017.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT