PSA - 2019 Universal Registration Document

GROUPE PSA Risk factors DPEF.B

RISKS ASSOCIATEDWITH QUALITYISSUES WITHPRODUCTS AND/OR SERVICES

1.5.2.2. HIGHRISK

Riskfactors

Riskmanagement andcontrolprocesses

TheGroupsellsits productsall overtheworldandso hasto satisfy customers with very different expectationsdepending on the country.If it fails to listen to these differentneeds,its sales may dropandtheGroupmaybe put in danger.GroupePSAaimsto be n°1 in customer satisfaction by 2021. According to internal benchmarkingmonitoringon customerrecommendation rate, the differencehas been halved comparedto the benchmarksince 2018. [DPEF.B] Vehicle safety The vehicle safety standards imposed by regulations are increasinglystringent and safety is one of the most important factorsin termsof customerchoice.Society’sexpectationswill be even higherwith the arrival of autonomousand connectedcars. Groupe PSA’s challengeis to continually improvethe safetyof its vehicles,without impacting on the sale price.

In each region, the Group has set up teams charged with analysingthe markets and the specific needs of customersin each country.Productsspecificto each regionare developedto fulfilthe expectations of all our customers. The Group’saim is to be rankedtop for customersatisfaction in each region. The safety of each individualroad user has always been the primary priority of Groupe PSA.At all stages of the vehicle lifecycle, Groupe PSA implements and maintains a global state-of-the-art safety approach. The Group is continually improvingthe safety of its vehicles.It is also carryingout vital workon vehicleresistanceto intrusionand newthreatslinkedto the cyber security of connected vehicles (see 2.3.2.1). A weaksignalmonitoringsystem( e.g. socialnetworks) is in place to preventany riskof crisis.Faultsfedbackby after-salesservice are analysedon a dailybasis;if a safetyrisk is identified,the crisis management processkicksin anddecisionsarealwaystakenwith a view to protecting customers. To attain the level of quality requiredto enable it to become customers’car manufacturer of choice,theGrouphas introduced quality managementsystems right the way along the value creation chain, from innovation development to customer handovervia, in particular,supplierand productioncontrol.The Group'splants are ISO 9001-certified for vehiclemanufacturing and IATF16949-certified for components and casting. (SeeCSR Report 4.1)

[DPEF.B] Customer satisfaction/product and service quality Customersatisfaction is basedon twofactors:productqualityand servicequality.A high qualitylevel is synonymouswith economic efficiencyandcustomer loyalty.On the otherhand,qualityfailures may leadto a dropin revenueand the Company’s reputationmay be seriously damaged.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT