PSA_GROUP_REGISTRATION_DOCUMENT_2017

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2017 AND OUTLOOK Capital Expenditure in Research & Development

Banque PSA Finance, signature of a framework agreement 4.4.2. with the BNP Paribas Group to form a car financing Partnership for Opel Vauxhall vehicles

On 6 March 2017, when the Master Agreement was concluded with General Motors, the Company simultaneously signed a Framework Agreement with BNP Paribas and BNP Paribas Personal Finance, to organise the joint purchase of Opel Vauxhall’s finance companies and the setting up of a car financing partnership for Opel Vauxhall vehicles. The acquisition of Opel Vauxhall’s finance companies will be completed through a holding company. This joint venture, owned in equal shares and on the same terms by Banque PSA Finance and

BNP Paribas Personal Finance, will from an accounting point of view retain the current European platform and staff of GM Financial. The Opel Vauxhall finance companies will distribute financial and insurance products over a territory initially including the following countries: Germany, United Kingdom, France, Italy, Sweden, Austria, Ireland, Netherlands, Belgium, Greece and Switzerland. The cooperation may potentially be extended thereafter to other

countries where Opel Vauxhall has a presence.

CAPITAL EXPENDITURE IN RESEARCH 4.5. & DEVELOPMENT

Automotive Expertise to deliver useful technologies

Innovation, research and development are powerful levers for developing competitive advantages by addressing the major challenges faced in the automotive industry (environmental, safety, emerging mobility and networking needs, etc.).

Every year, Groupe PSA invests in research and development to stay ahead, technologically, of environmental and market changes.

The R&D strategy in the “Push to Pass” plan 4.5.1.

R&D AT THE HEART OF THE “CORE MODEL STRATEGY”

4.5.1.1.

Through its “Push to Pass” strategic plan, the Group has decided to launch a product offensive focused on both its customers and on its leading profit pools world-wide by releasing one new car per region, per brand and per year from 2018 (“Core Model Strategy”), to be developed on the basis of a targeted range of: 26 passenger cars; „ 8 light commercial vehicles, including a new one-ton pickup. „ 9 Opel Vauxhall launches will bolster the Groupe PSA product offensive. To roll out this ambitious product plan and optimise its efficiency, Groupe PSA’s R&D Department develops its vehicles through multi-brand and multi-region programmes, based on modular multi-energy platforms that enable it to maximise the reuse of parts. Accordingly, the Group is developing all of its body models through global programmes each of which caters for the interests of the six regions and the brands for the segment it targets. These body designs are created over two lighter, multi-energy platforms, and offer greater modularity in terms of length, height

and wheel diameter, to address the challenges faced in terms of mass, environment and functionalities. The mid- and hi-end body designs of all the Group’s brands „ (sedans, coupés, MPVs, SUVs and LCVs) are developed on the EMP2 Efficient Modular Platform, launched in 2013. In addition to petrol and diesel engines, this platform will cater for the plug-in hybrid petrol-electric powertrain (PHEV). The segment B city car models up to the compact SUVs, as well „ as the new segment C sedans, dedicated mainly to urban use, will be developed on the Common Modular Platform (CMP), established in collaboration with Dongfeng Motor Corporation. This platform, to be launched in 2018, will by 2019 be available with an electric powertrain variant. This modular approach, coupled with programme-based organisation, will enable the reuse of basic parts and modules but also body parts, generating a 20% saving on R&D costs and a 30% saving on capital expenditure (CAPEX) compared to an entirely new model. The new Opel and Vauxhall cars will also be developed on these multi-energy EMP2 and CMP platforms.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT