CARLOS TAVARES OF GROUPE PSA - 7 MEGA TRENDS THAT WILL SHAPE OUR FUTURE
Carlos Tavares, The Chairman of Europe’s second largest vehicle manufacturer - Groupe PSA, shares his vision of the major trends that will transform or change society, and in particular mobility.
Groupe PSA is one of the world’s leading providers of mobility solutions. Operating on the 5 continents, it must adapt its offer to the specific needs of each market. Today, we no longer offer the same product all over the world. This is the end of the “one size fits all”. Thus, the strong automotive culture in Europe or North America tends to slow down the deployment of new mobility solutions. On the contrary, Africa should skip the stage of owning a vehicle thanks to the democratization of smartphones and the new mobility services offered. Europe, North America and Japan are renewal automotive markets, while others such as India are experiencing strong growth. Despite market fragmentation and new modes of mobility, automotive industry revenue sources are expected to increase by about 30% by 2030, representing nearly 4.4% annual growth, mainly based on on on-demand mobility and new data-based services.
Carpooling, self-service cars, by 2030, more than one kilometre out of three will be “shared”. In a few years’ time, travelling alone in your own car will no longer be the norm. Everyone will choose the mobility solution that best suits them according to the context. Thus, “shared mobility” is profoundly transforming the automotive market. But while its economic benefits are reducing the number of vehicle owners, registrations are increasing, to the benefit of shared platform fleets. As an actor committed to safe, simple, sustainable and affordable mobility, Groupe PSA offers mobility services with Free2move that guarantee everyone freedom of movement.
ENERGY AND THE ENVIRONMENT
Today, the energy and ecological transition is a priority for public authorities as they become the new technology specifiers. From 2021 onwards, European legislation will require that carmakers cut their current average C02 emissions per kilometre by 40%. To achieve these targets, Groupe PSA needs to capitalise on the development of electric vehicles and plug-in hybrids. It must leverage its ability to adapt and capacity for innovation to support the transition, transforming obstacle into opportunity. But this transformation is not just about changing the types of transport we use; it is about changing the way we live. With more expensive vehicles comes the greater risk of wider inequalities. To preserve our freedom of movement, Groupe PSA is also extending is portfolio of mobility services. Lastly, the mass deployment of electric vehicles means anticipating the challenges associated with raw materials and the production of electricity. The aim is to achieve environmentally but also socially responsible mobility.
In 2050, 9 billion people will populate the Earth. Our mission is to offer everyone the opportunity to move freely. In both urban and rural areas. In Western as well as in emerging countries.
The car is the next connected object. According to Business Insider Intelligence, by 2020 the number of connected vehicles in circulation will reach 381 million. This connectivity is based on an exchange of data, which, when collected and analysed, makes it possible to provide new services to users and cities: predictive maintenance, energy optimisation, choice of the best route according to traffic, optimisation of transport flows, etc. This data is central to the emergence of Smart Cities and new on-demand mobility models. Users regularly share their data in exchange for access to a service. Thus, a large majority of the data shared today is free of charge and without always measuring its impact properly. However, there is a growing feeling among consumers that they are being dispossessed of their personal data and their right to privacy. On the manufacturers’ side, data ownership raises many questions. Do they belong to the car owner? to the driver? to the mobility service operator? Should we therefore preserve a private space inside the vehicle? Or completely anonymize the data? In partnership with IBM as part of the “Smarter Cities” project, Groupe PSA has chosen to make anonymous vehicle data available to about ten cities and regions in order to solve traffic congestion problems and detect dangerous areas. A data governance model must be invented to respect privacy while preserving our freedom of movement.
In freeing us from driving, autonomous vehicles will encourage a shift in our relationship to time. Road safety conditions will also improve as the number of traffic accidents declines. Autonomous vehicles will only gradually make their way onto the market. Different levels of vehicle automation will be introduced during the coming transition period, giving social behaviors and regulations the time needed to adjust. This is because the use of artificial intelligence, which is essential to autonomous driving technology, lies at the crux of a number of ethical, environmental and legal issues. By the end of 2019, the Group’s prototype vehicles equipped with level 2, 3 and 4 autonomous driving functions had driven more than 200,000 kilometers. But despite the technological advances, prudence remains paramount at Groupe PSA, whose absolute first priority is safety. The Group will gradually equip its vehicles with the level 3 autonomous driving functions, initially at low speeds (the driver will be able to activate the autonomous mode under certain conditions, such as in a traffic jam on a lane with separate carriageways). Then, vehicles with level 4 functions (without driver) will certainly be possible for the shared transportation of passengers and goods on private sites and in closed-off areas. The autonomous automobile revolution is underway. According to a KPMG study, 42% of kilometers driven in Europe will be traveled by autonomous vehicles by 2030. They will account for 10% of car sales by 2035.
Successful digital transformation is not just about adopting new technological tools. This mutation is above all a human story. Big data, connected objects, artificial intelligence… Digital transformation creates value by optimizing internal processes at all levels of the hierarchy, from R&D to production, from marketing to after-sales service. But above all, digitalization leads to a profound cultural change in the way people work. To bring out innovative solutions, employees are now invited to take decisions in a collaborative and transversal way. Accompanying this transition requires “embedding” all employees in a global dynamic of change, regardless of their generation and degree of digital literacy. The company’s competitiveness is based on this pool of talent with creative ideas. This is why Groupe PSA relies on the training of its employees to prepare for the future and grow with them.
CHANGES IN CUSTOMER BEHAVIOUR
In 2050, 9 billion people will populate the Earth. Our mission is to offer everyone the opportunity to move freely. In both urban and rural areas. In Western as well as in emerging countries. The deployment of connected services and the emergence of new players has led to new consumption patterns. The demand for customization of mobility services is very high. Beyond the automotive sector, consumers’ expectations are now focused on user experience and quality of service. Customers are looking for mobility solutions that fit their lifestyles. They want a range of mobility services that meet each of their needs. Car-sharing, intermodality, “on-demand” services are the new face of mobility. Transport modes coexist and downtowns are redesigned to reduce the space exclusively used by cars. Of course, ecofriendly mobility is now a necessity for all. Former Secretary of the Environment of Mexico DF (in charge of the climate plan and the “soft mobility” strategy), Martha Delgado is also the Executive Director of the PENSAR Foundation. Previously, she was a Member of Parliament (independent), leader of environmental community networks, former Governor of the World Water Council and Vice-President of the Local Governments for Sustainability (ICLEI) network.
Europe’s second largest vehicle manufacturer is continuing its transformation with a new strategic plan, Push to Pass. Its ambition: to market vehicles of cutting-edge efficiency as well as the mobility services acclaimed by its customers.
Carlos Tavares, a graduate of Ecole Centrale de Paris, held a number of different positions with the Renault Group from 1981 to 2004 before joining Nissan. In 2009 he was appointed Executive Vice President, Chairman of the Management Committee Americas and President of Nissan North America. He was named Group Chief Operating Office of Renault in 2011.He joined the Managing Board of Groupe PSA in January 2014, and was appointed Chairman of the Managing Board in March 2014.
CAR MANUFACTURER AND MOBILITY PROVIDER
From the production of vehicles to the design of innovative services adapted to customer needs and the invention of solutions that shape future mobility, Groupe PSA is present across the entire automotive value chain.
A GLOBAL AUTOMOTIVE GROUP
Groupe PSA is present in some 100 countries and develops activities in six strategic regions.
A LEADING VEHICLE MANUFACTURER SETTING ITS SIGHTS ON THE NEW
Europe’s second largest vehicle manufacturer is continuing its transformation with a new strategic plan, Push to Pass. Its ambition: to market vehicles of cutting-edge efficiency as well as the mobility services acclaimed by its customers. Today, smartphones give us access to a wide range of transport solutions that we can pay for as we go. This “mobility as a service” is a tailor-made response to our individual travel needs. Committed to safe, simple, sustainable and affordable mobility, Groupe PSA also provides mobility services that give everyone the freedom to move around.