PSA - 2019 Universal Registration Document

GROUPE PSA History and highlights of the Company’s business

HISTORY AND HIGHLIGHTS 1.1. OF THE COMPANY’S BUSINESS

Foundedin 1896, PeugeotS.A. engagedin manufacturingand sales until 1965, when it was transformed into a holdingcompanyas part of a legal and financial restructuringof the Group. Its operating activities were taken over bya subsidiary, Automobiles Peugeot. In 1974, Peugeot S.A. acquired all of the outstandingshares of CitroënS.A. andthen merged the two companies in 1976. In 1978, the Chrysler Corporation,an Americancompany,sold to PeugeotS.A.the stakein its industrialandcommercialsubsidiaries in Europe.Thebusinessof thesecompanies,whichwascontinuedunder theTalbotbrand,wasmergedwithAutomobiles Peugeot in 1980. In 1979, Chrysler Financial Corporation’s European commercial financingsubsidiarieswere acquired,markinga turningpoint in the developmentof the Group’s finance business. Aciers et OutillagesPeugeotmergedwith Cycles Peugeotin 1987 andwas renamedEcia.It thenbecameFaureciain 1998followingits friendlymergerwith automotiveequipmentmanufacturerBertrand Faure. In 2001, Faurecia acquired Sommer Allibert’s automotive equipmentbusiness. PSA Finance Holding, whose subsidiaries provide financing for Peugeotand Citroënvehiclesales, was transformedinto a bank in 1995. Its current name isBanque PSA Finance. The Automotivedivisionwas reorganisedin late 1998 to align legal structures with the new functional organisation introduced that year. AutomobilesPeugeotand AutomobilesCitroëntransferredall their motor vehicle development and manufacturing assets to Peugeot Citroën Automobilesand their capital equipmentdesign andmanufacturingoperationsto Process Conception Ingénierie. In 1992, a joint venturewith the ChinesegroupSAW(formername of DongfengMotor)was created,called ShenlongAutomobileand dedicatedto theproduction and sales inChina of the Citroën brand. In 2000,the joint venturewith the ChinesegroupDongfengMotor Group(DFG)was extendedto the brandPeugeotand changedits nameto DPCA. In 2011, a new joint venturewas created in China with the group Changan,called CAPSA, dedicatedto the productionand sales in China ofthe DSbrand. In February 2012, Automobiles Citroën sold Citer, a group specialising incar rentals,to the EntrepriseGroup. At the end of 2012, Groupe PSAsold 75% of the capitalof GEFCO S.A., the Group’sparentcompanywhich specialisesin Logistics,to JSC RussianRailways(RZD). Followingtheprojectto increasethe investmentof Groupe PSAand Renault in the capital of the subsidiariesFrançaisede Mécanique (Douvrin, Nord-Pas de Calais) and Société de Transmissions Automatiques (Ruitz, Nord-Pas de Calais), in December 2013 Groupe PSA tookexclusivecontrol ofFrançaisede Mécanique. At the end of March 2014,the Groupstrengthened its industrialand commercial joint arrangement with DongfengMotorGroup(DFG).

Following the signing of a framework agreement on European partnershipwith the SantanderGroup in Brazil in July 2014then in July 2015,all localpartnershipsbetweenBanquePSAFinance(BPF) and the Santander Group started operations. For more details, pleaserefer to Section 1.3.1.3 below. Moreover, to speed up the expansion of Peugeot Scooters, strengthen the brand and its products, and secure its future, Groupe PSA has entered on 19 January 2015 into a long-term strategic partnership withMahindra& Mahindra Group (M&M). On 31 March2015, the GroupacquiredMisterAuto, an e-commerce leader for spare parts for all automotivebrands on the European market. On 21 June2016, Groupe PSAand Iran Khodrosignedthe final joint venture agreement to produce latest-generation vehicles in Iran. On 29 July 2016, Faurecia sold its AutomotiveExteriorsbusiness, comprisingbumpersand front end modules,to CompagniePlastic Omnium. On 6 October2016,Groupe PSAandSAIPA,Citroën’spartnerin Iran since1966,signeda jointventureagreementto produceandmarket Citroënvehicles. In December 2016,Groupe PSAandAramisauto,the leaderin online sales of used vehicles (UV), entered into a capital and strategic alliance to accelerate the development of online sales of used vehiclesand relatedservices. On 25 January2017,the Groupe PSAand the CK BirlaGroupsigned joint venture agreements to produce and sell vehicles and components in India by2021. On 6 March2017,GeneralMotors(GM)andGroupe PSAannounced that they had enteredinto an agreementunderthe termsof which theGeneralMotorssubsidiaryOpelVauxhall(OV)andtheEuropean operationsof GeneralMotors Financial would joinGroupe PSA. On 1 August 2017, Groupe PSA announced the closing of the acquisitionof the Opel and Vauxhallsubsidiariesof GeneralMotors, for which the preliminaryagreementhad been signed on 6 March 2017. On 4 December2017, Groupe PSAand NidecLeroy-SomerHolding decidedto work togetherin France in the field of electrictraction motor. For this purpose, Nidec Leroy-Somer and Groupe PSA entered into a joint venture agreement. On 22 May 2018, the creation of a joint company, Nidec-PSAemotors, was approved. This new joint venture between Nidec Leroy-Somer and Groupe PSA focuses on designing and engineering, developing, manufacturing and selling electric tractionmotors. Followingthe United States’ announcementon 8 May 2018 that it waswithdrawing fromthe Irannucleardeal,theGrouphas complied with the new Americanregulationsby suspendingits operationsin Iranthat are affected by thesanctions. On 25 October2019,the Groupannouncedthat Mahindrawouldbe acquiring allthe sharesof PeugeotMotocycles tobolsterits growth. On 17 December2019, PeugeotS.A. and Fiat ChryslerAutomobiles N.V.signeda bindingCombinationagreementprovidingfor a 50/50 merger of their businesses to create the 4th largest global automotiveOEMby volumeand3rd largest byrevenue.

6 GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT