COVER PHOTOS

2008 Sustainable Development and Annual Report

COVER PHOTO EXPLANATION
Interior of the Milling a component of the
Citroën Hypnos Citroën Grand C4 Picasso
concept car mock-up

Peugeot Boxer Peugeot 207

taillight front wing

Psa peugeot citroën

Incorporated in France with issued capital of e234,048,798

Governed by a Managing Board and a Supervisory Board
Registered Office: 75, avenue de la Grande-Armée - 75116 Paris, France

2008
R.C.S. Paris B 552 100 554 – Siret 55 2 100 554 00021
Phone: + 33 (0)1 40 66 55 11 – Fax: + 33 (0)1 40 66 54 14
www.psa-peugeot-citroen.com – www.sustainability.psa-peugeot-citroen.com
Sustainable Development
and Annual Report
 2
largest
nd
No. 1
manufacturer
3,260,400
vehicles
carmaker of light commercial
vehicles in Europe, with
sold worldwide
in Europe, with
13.8% 19.9%
of the market
of the market

CONTENTS
2_ Message from the Chairman of the Supervisory Board
4_ The Supervisory Board
6_ Interview with the Chairman of the Managing Board
8_ Executive Management
10_ Investor Relations
12_ Key Figures
14 - 19_ The Year’s Highlights

OUR AMBITION
22_ Fundamentals Driving Our Ambition
24 - 27_ Sustainable Development Approach

OUR BUSINESS
30 - 33_ Peugeot and Citroën
34_ 2008 Performance
36 - 40_ International Expansion
Available on the CD-Rom
41 - 43_ Other Businesses • The 2008 Sustainable Development Performance Indicators supplement
• The 2008 Registration Document, filed with the Autorité des Marchés Financiers on 24 April 2009,
OUR COMMITMENT is available upon request from: Investor Relations – 75, avenue de la Grande-Armée – 75116 Paris, France
46_ Translating Needs into Products Phone: 0810 424 091 (France only, charged at local rate) – Email: communication.financiere@psa.fr
48 - 53_ Vehicles and the Environment • Notice of Meeting for the Annual Shareholders Meeting
54 - 57_ Manufacturing and the Environment
58 - 67_ Social Responsibility
68 - 75_ Corporate Citizenship

Photos: Front cover: C-A. D’Autichamp – P. Legros – P. Ollive • p. 2: M. Moore • p. 5: M. Moore – N. Zwickel • p. 7: M. Moore • p. 9: M. Moore – P. Legros – S. Meyer – N. Zwickel
OUR PERFORMANCE – Corporate Communications, China – Corporate Communications, Brazil – D. Pizzalla • p. 14: S. Muratet – J. Lejeune – Corporate Communications, China • p. 15: N. Zwickel –
78 - 83_ Financial Indicators S. Muratet – G. Ricciardi • p. 16: M. Moore – C-A. d’Autichamp – S. Meyer • p. 17: BMW – S. Meyer – J. Stehlin – Peugeot Motorsports • p. 18: J. Lejeune – P. Legros – M. Suning
• p. 19: Citroën Motorsports – Boyko – L. Nivalle • p. 20/21: P. Sautelet • p. 22: P. Legros • p. 23: P. Sautelet • p. 24: S. Meyer – S. Muratet – N. Zwickel • p. 25: IVM • p. 28:
84 - 87_ Product Indicators J. Lejeune • p. 29: Corporate Communications, Citroën • p. 31: P. Sautelet – P. Legros • p. 32: Corporate Communications, Citroën • p. 33: J. Lejeune – Corporate Communications,
88_ Production Plant Environmental Indicators Citroën • p. 35: S. Foulon • p. 36: J. Lopeteguy • p. 37: G. Ricciardi • p. 38: M. Suning • p. 39: L. Can-Yun – Corporate Communications, China • p. 40: F. Spilka • p. 41: Gefco •
90_ Employee Relations Indicators p. 42: P. Legros • p. 43: Faurecia • p. 44/45: L. Nivalle • p. 49: F. Pitchal – P. Legros • p. 50: J. Lejeune • p. 51: A. Bernier • p. 53: M. Ech Charqi – S. Meyer • p. 56: S. Meyer •
p. 57: C. Pihery • p. 58: D. Pizzalla • p. 59: P. Legros • p. 60: N. Zwickel • p. 61: Corporate Communications, Trnava • p. 62: P. Legros • p. 63: J. Lejeune • p. 64: S. Meyer • p. 65:
92_ Production Facilities / Methodology Corporate Communications, Metz • p. 66: R. Degoul • p. 67: N. Zwickel • p. 68: J. Lejeune • p. 69: J. Stehlin – P. Sautelet • p. 71: D. Pizzalla • p. 72: J. Lejeune • p. 73: J. Stehlin
• p. 75: Corporate Communications, Poissy – J. Stehlin • p. 76: A. Bernier • p. 77: P. Sautelet • Back cover: C-A. D’Autichamp – P. Legros – S. Foulon.

Design: PSA Peugeot Citroën Corporate Communications.

Creation, production and printing:

3,000 copies of this Sustainable Development and Annual Report have been printed on FSCTM-certified Creator Silk paper, made exclusively with
Indicates PSA Peugeot Citroën’s 10 sustainable development objectives for 2008-2011. fibres from responsibly managed forests. Vegetable-based inks made from renewable raw materials were used. The printer, which has earned both
FCBA-COC-000057 Imprim’Vert and FSCTM certification, has committed to taking continuous, tangible action to reduce harmful emissions, while saving natural resources.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 1

More than

201,700
employees worldwide
1 million
vehicles sold outside Western Europe

PSA Peugeot Citroën is a world-class European automobile

manufacturer whose two brands, Peugeot and Citroën, offer
innovative, stylistically differentiated model line-ups. With marketing
operations in 150 countries, the Group generates more than one
third of its sales outside Western Europe. In addition to investments
in France and the rest of Europe, it is actively expanding
its production base near priority markets, with manufacturing
facilities in Latin America, China and soon in Russia.

Over the years, the Group has gained a worldwide reputation

for its environmental leadership. In 2008, it sold more than one million
vehicles emitting less than 140 grams of CO2 per km for the third
consecutive year. Road safety is also a major focus at PSA Peugeot
Citroën, representing a significant portion of R&D spending.
The Group’s human resources policy, based on social dialogue,
is deployed in all host countries through a global agreement
on social responsibility.

PSA Peugeot Citroën is also involved in financing, with Banque

PSA Finance; transport and logistics, with Gefco; and automotive
equipment, with Faurecia.
2 / OUR GROUP > Message from the Chairman of the Supervisory Board
MESSAGE FROM THE CHAIRMAN
OF THE SUPERVISORY BOARD
{{
The Supervisory Board has instructed
the new Managing Board to deploy
all of the resources the Group needs
to weather the current economic crisis,
while retaining its capacity for growth,
in line with the long-term strategic vision
defined by the Supervisory Board.”
Dear fellow shareholders,
PSA Peugeot Citroën’s performance in 2008 varied sharply
from the first half to the second. In the first six months of the
year, the Group developed its business in line with the objectives set
by the Supervisory Board, i.e., return to growth, pursue international
expansion and improve profitability. To meet these objectives,
the entire organisation focused on actively deploying the CAP 2010
competitiveness plan.
This commitment drove improvement in several areas
during the year, including:
- An increased international presence, with the confirmation of
a new plant in Kaluga, Russia, the signature of a related agreement
with Mitsubishi, and the introduction of dedicated models (such as
the Peugeot 207 Mercosur) in our strategic markets.
- A busy launch schedule, with the introduction of new versions of
the Peugeot 308 and the new Citroën C5 – two models that are widely
recognised for their unsurpassed quality.
- The sustained renewal and broadening of the light commercial vehicle
line-up, with the new Partner/Berlingo and Bipper/Nemo.
- The extension of the Lean Everywhere management process from
manufacturing to every aspect of our business, which has increased
cost savings and improved profitability. The Group ended the first
half with worldwide sales up 4.6% and an operating margin of 3.7%.
In the second half, the economic and financial crisis
caused demand to collapse in automobile markets around
the world, leading to a substantial decline in the Group’s final-quarter
sales. In response to this steep downturn, the Managing Board
redefined the Group’s operating priorities with stepped-up deployment
of cost-cutting measures outlined in the CAP 2010 competitiveness
plan and extremely disciplined management of the Group’s cash and
cash equivalents. Lastly, the Group decided to reduce massively global
production in the fourth quarter, by 26% from the year-earlier period,
to align output with demand and bring down inventories as quickly
as possible. This had a major impact on the Group’s financial position.

Over the full year, worldwide sales of assembled and CKD
vehicles declined by 4.9% to 3,260,400 units. Recurring operating
income contracted to €550 million, or 1% of sales and revenue,
from €1,752 million and 3% in 2007. Nonrecurring operating expense
amounted to €917 million. The net loss attributable to equity holders
of the parent came to €343 million for the year.
On the positive side, however, the CAP 2010 plan resulted in total cost
savings of €1.4 billion. The Group also maintained its European market
share at 13.8% and confirmed its position as an environmental leader,
selling close to 1.2 million vehicles emitting less than 140 grams
of CO2 per km worldwide. Lastly, PSA Peugeot Citroën strengthened
its leadership in the European light commercial vehicle market,
with a 19.9% share.
Today, at a time when forecasts point to prolonged
weakness in automobile sales in most of the major markets,
the Supervisory Board is more than ever committed to maintaining
the Group’s vision of becoming one of the world’s leading automobile
companies. In addition to the financial measures demanded by the
crisis, we have asked the Managing Board to pursue the automobile
projects already underway, maintain the product plan and continue
expanding the Group’s global footprint. In light of 2008’s results and
the priority need to allocate financial resources to supporting the product
plan, driving business development and strengthening the Group’s
cash position, shareholders at the Annual Meeting on 3 June 2009
were asked to waive the payment of a dividend with respect to 2008.
The Supervisory Board also felt it necessary to strengthen
the Group’s executive management. On 29 March 2009,
it decided to remove Christian Streiff as member and Chairman of the
Managing Board. This grave, serious, and important decision reflected
the opinion of the Supervisory Board members that, without calling
the announced strategy or CAP 2010 plan into question, the Managing
Board needed a change of leadership. Philippe Varin, who became
/ 3
Chairman of the Managing Board effective 1 June 2009, has exercised
global senior executive responsibilities in manufacturing companies,
including during periods of recession. This is why the Board felt that
he had the skills to deploy diligently and assertively all of the resources
the Group needs to weather the crisis, while retaining its capacity
for growth, in line with the long-term strategic vision defined by
the Supervisory Board. The Board would like to take this opportunity
to express its deep thanks to Roland Vardanega for serving
as Chairman pro tempore through 31 May 2009.
2009 will be a difficult year. That said, PSA Peugeot Citroën
can count on solid strengths to help it navigate the weak
economy and deeply shaken automobile markets, starting
with the broad, modern and environmentally-friendly Peugeot and
Citroën model line-ups. The Group will launch several new models
during the year, including the Citroën C3 Picasso and Peugeot 3008,
to ensure that the right models are available in all markets to meet
customer expectations. It will also be supported by a strong new
leadership team with the determination to bring PSA Peugeot Citroën
through the crisis in good shape while preparing its future as one
of the first global carmakers to return to growth and profitability.
Thierry Peugeot/
CHAIRMAN OF THE SUPERVISORY BOARD
4 / OUR GROUP > THE SUPERVISORY BOARD
THE SUPERVISORY
BOARD
Since 1972, Peugeot S.A. has had a two-tier management
structure comprising a Managing Board, responsible
for strategic and operational management, and a Supervisory
Board, responsible for oversight and control. This separation
is especially effective in addressing the concern for a balance
of power between the executive and oversight functions,
as reflected in the principles of good corporate governance.
Mission
The Supervisory Board appoints the members of the Managing Board
and oversees the Managing Board’s management of the company.
The Supervisory Board also has authority to remove members of
the Managing Board from office and to approve capital increases and
decreases, bond issues, the signature or termination of agreements
with other companies operating in the same industry that will have
a decisive impact on the Group’s future development, and any major
transaction that substantially alters the business or financial structure
of the Company or the Group. Lastly, the Supervisory Board ensures
that the strategy implemented by the Managing Board is consistent
with the Group’s long-term vision, as defined by the Supervisory
Board. The Supervisory Board meets at least once every quarter;
the agenda of each meeting is prepared by the Chairman.
Members
The Supervisory Board has twelve members plus two non-voting
advisors, all of whom are elected by shareholders for six-year terms.
Supervisory Board Meetings in 2008
The Supervisory Board met five times in 2008, with an average
attendance rate of 98%. In February 2008, the Supervisory Board
conducted a new self-assessment of its procedures and structure,
which found that the quality of discussions during the meetings
and the members’ knowledge of the Group had all improved.
The number of meetings was set at five per year. The self-assessment
also noted the members’ interest in examining subjects concerning
strategic or long-term issues in greater depth. Lastly, knowledge
of the Group has been further improved by presentations on specific
topics by members of the Managing Board or senior executives
and by meetings with line managers during on-site visits.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
The Supervisory Board has decided to adopt the AFEP-MEDEF
Corporate Governance Code, as applicable to French joint-stock
companies with a Supervisory Board and Managing Board.
Committees of the Board
The Supervisory Board has created three specialised committees:
the Strategy Committee, the Compensation and Appointments
Committee and the Finance Committee. The role of these Committees
is to analyse and prepare certain matters to be discussed at
Supervisory Board Meetings.
- The Strategy Committee comprises seven members who are
appointed in a personal capacity and may not be represented
by another party:
Jean-Philippe Peugeot, Chairman; Jean-Paul Parayre; Robert Peugeot;
Thierry Peugeot; Henri-Philippe Reichstul; Ernest-Antoine Seillière
and Jean-Louis Silvant. The Strategy Committee met four times in 2008,
mainly to discuss the Group’s automobile product plan, its strategy
in China, Gefco’s growth strategy and the main objectives set in
response to the financial and economic crisis.
- The Compensation and Appointments Committee comprises
four members who are appointed in a personal capacity and may
not be represented by another party: Thierry Peugeot, Chairman;
Jean-Philippe Peugeot; Ernest-Antoine Seillière and Jean-Louis Silvant.
The Compensation and Appointments Committee met six times in
2008, notably to discuss the salary and bonuses of Managing Board
members as well as the granting of stock options to Managing Board
members. In addition, the Committee was informed of the succession
plans for key executives and examined the recommendations issued
by AFEP-MEDEF on 6 October 2008, which it advised the Supervisory
Board to adopt.
- The Finance Committee comprises five members who are appointed
in a personal capacity and may not be represented by another party:
Jean-Paul Parayre, Chairman; Marc Friedel; Jean-Louis Masurel;
Robert Peugeot and Marie-Hélène Roncoroni. The Finance Committee
met six times in 2008. At each meeting, it reviewed the management
reporting indicators.
 / 5

Bertrand Peugeot,
1923-2009

In memoriam –
Bertrand Peugeot
Bertrand Peugeot, non-voting advisor of the
Supervisory Board, passed away on 14 February
2009. Born in 1923, Bertrand Peugeot was involved
in the creation of PSA Peugeot Citroën in 1976.
He held various positions as Chairman or Director
of Group companies, including Chairman of Cycles
Peugeot (later ECIA) and Peugeot Motocycles.
Mr. Peugeot was Vice Chairman of the Supervisory
Board from 1972 to 1999.

1_ Thierry Peugeot,
Chairman
1 2 3 2_ Jean-Philippe Peugeot,
Vice-Chairman
3_ Jean-Louis Silvant,
4 5 6 Vice-Chairman
4_ Marc Friedel
5_ Jean-Louis Masurel
7 8 9 6_ Jean-Paul Parayre
7_ Robert Peugeot
8_ Geoffroy Roux de Bézieux
10 11 12 9_ Marie-Hélène Roncoroni
10_ Henri-Philippe Reichstul
11_ Ernest-Antoine Seillière
12_ Joseph F. Toot Jr.
13_ Roland Peugeot, Advisor
13 14 14_ François Michelin, Advisor

The Auditors and the Chief Financial Officer attended the meetings
held to review the 2007 financial statements and the 2008 interim
financial statements. During the last quarter of the year, the Committee
carefully monitored the cash position and financing of the manufacturing
and sales companies and of Banque PSA Finance. It also devoted a
specific meeting to examining the Group’s internal audit plan and to
tracking the action plans implemented following the fraud at Banque
PSA Finance in 2007. The Committee carefully reviewed measures to
enhance Banque PSA Finance’s internal control system. At its meeting
on 6 February 2009 – which was attended by the Auditors – the Finance
Committee reviewed (i) the 2008 financial statements of the Company
and the Group, prior to their presentation to the Supervisory Board on
10 February 2009, (ii) Faurecia’s financial position, and (iii) the financing
measures being negotiated with the French government and banks.
6 / OUR GROUP > Interview with the Chairman of the Managing Board
INTERVIEW WITH THE CHAIRMAN
OF THE MANAGING BOARD
Philippe Varin joined PSA Peugeot Citroën on 15 April 2009
and became Chairman of the Managing Board on 1 June.
He shares his first impressions with us below.
You have just arrived at the head of the Group. How do you
see this new challenge?
I am very pleased and proud to have been chosen to lead PSA Peugeot
Citroën, even though I am fully aware of the challenges facing us. I’ve
worked for 31 years in industry – first in aluminium and then in steel –
in international environments and often during times of crisis. I’m excited
about putting my experience as an engineer and executive to use here
at PSA Peugeot Citroën.
What is your view of the Group at present?
In these first few weeks, I’ve been able to visit a number of manufacturing
and technical sites, R&D centres and sales outlets. This has given
me the opportunity to meet our team members and identify the Group’s
main strengths. I’ve also met with employee representatives. These
initial contacts have confirmed my opinion that PSA Peugeot Citroën
should aim to rank among the leading global carmakers by leveraging
its immense technical and technological potential, skilled teams
and projects underway to improve organisation and efficiency. That
said, the Group has obviously run into turbulence. The global economic
crisis has hit us hard, particularly as concerns our cash position.
That’s why my first priority will be to achieve a healthier balance sheet.
We will do everything we can to remove the constraints that are limiting
our room for manoeuvre. I’ve asked our teams to remain focused on
the targets set by our CAP 2010 plan, especially in terms of cost cutting.
This will not be enough in itself, but it will be indispensable nonetheless.
And in the medium term?
I think it’s crucial for us to have an ambitious vision here at PSA Peugeot
Citroën. It’s my job to carefully define this vision with the management
team so that it can be translated into tangible objectives for Group-wide
buy-in and deployment. PSA Peugeot Citroën also has to become more
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
global, not only in its geographic presence but also in the make-up of
its teams, because diverse ways of thinking and looking at things are
what will drive our strategy and ability to innovate, and ultimately allow
us to meet our markets’ specific needs. Lastly, in addition to our passion
for automobile technology and our products, we need to develop our
customer service. Clearly, we need to be able to respond very quickly
to new demands, but even more important, we need to be able to
anticipate them. With this forward-looking approach, we will constantly
track changes in society, lifestyles, consumption and mobility to prepare
the solutions of the future. In short, we want to have the right product
ready for the market at the right time.
What’s your analysis of the economic crisis?
Because car manufacturing requires huge investments and entails
high fixed costs, the recession is hitting the automobile industry much
harder than others. What’s more, cars are a large expenditure item
that consumers can put off buying. The consequences of this crisis are
substantial, because the entire industry is affected. That’s why all of us,
from carmakers to suppliers, need to find solutions. Unfortunately,
I’m afraid that it will take several years to return to the kinds of sales
numbers we saw in 2008 in the developed countries. On the other
hand, the market will continue to grow in emerging economies where
we need to expand our presence. The economic crisis is also creating
fundamental changes that will impact our markets over the long term.
Consumers have new expectations when it comes to prices, and they
are increasingly concerned about environmental issues.
Speaking of the environment, there is a huge focus
in our society today on the automobile.
Clearly, climate change is a major challenge for the automobile industry.
PSA Peugeot Citroën is Europe’s leading manufacturer of low CO2
emission vehicles, and that’s a strength for us as we move forward.
We need to maintain our focus and pursue our work in this area
to enhance our position in increasingly competitive markets. We will
be at the cutting edge of “post-oil” products and solutions to meet
our customers’ needs.
 / 7

Is PSA Peugeot Citroën well equipped to weather the crisis?

I have absolutely no doubts that the Group will be able to emerge
from the crisis even stronger than before-otherwise I wouldn’t have
{{
PSA Peugeot Citroën should aim to rank
among the leading global carmakers
accepted this job. But to achieve this ambition, we’ll first have to make
by leveraging its immense technical
it through the crisis, restore our financial leeway and ask ourselves and technological potential, skilled teams
the right strategic questions. and projects underway to improve
organisation and efficiency.”
How do you intend to motivate your workforce?
I believe in management based on respect, two-way communication
and trust. For me, it’s extremely important that all our team members
share in our vision for the future and that this vision has meaning. Our
teams love what they do and they have exceptional skills. They need
to know, in practical terms, what they can do to make PSA Peugeot
Citroën a success. We will set ambitious targets, based on continuous
benchmarking, and I will report on the results regularly, both in-house
and in public.

philippe varin/
Chairman of
the Managing Board
8 / OUR GROUP > Executive Management

EXECUTIVE management
Managing Board
The Managing Board is responsible for executive leadership and
financial management, helping to define and implement the Group’s
strategic vision and defining Group policies. It decides among
the various courses of action and allocates the appropriate resources.
In 2008, the Managing Board was comprised of Christian Streiff,
Chairman; Grégoire Olivier (Programmes); Jean-Philippe Collin
(Peugeot); Gilles Michel (Citroën)* and Roland Vardanega
(Manufacturing and Components). Managing Board members are
appointed by the Supervisory Board for four-year terms. They may
be removed from office by the Supervisory Board pursuant to
the Company’s bylaws, or by shareholders in a General Meeting,
in accordance with French company law.
Other Members of the Executive Committee
The Executive Committee includes the members of the Managing
Board plus Frédéric Saint-Geours (Advisor to the Chairman),
Isabel Marey-Semper (Finance and Strategy), Denis Martin (Human
Resources), Jean-Claude Hanus (Legal Affairs, Institutional Relations
and Internal Audit) and Liliane Lacourt (Corporate Communications).
As of 30 April 2009, the Expanded Executive Committee also
included Claude Vajsman (China), Vincent Rambaud (Latin America),
Jean-Christophe Quémard (Purchasing), Daniel Marteau
(Replacement Parts), Alain Sartoris (Executive Development and
Information Technology) and Pascal Henault (Automobile Research
and Innovation), who each report directly to the Chairman
of the Managing Board.

On 29 March 2009, the Supervisory Board removed Christian Streiff * Member of the Managing Board until 31 December 2008.
from office as member and Chairman of the Managing Board and
appointed Philippe Varin Chairman of the Management Board effective
1 June 2009. Roland Vardanega, who is already a member of the
Managing Board, was appointed Chairman pro tempore for the period
from 29 March to 31 May 2009. At its meeting of 21 April 2009,
the Supervisory Board appointed Jean-Marc Gales member of
the Managing Board and Executive Vice-President, Citroën Brand.

1_ Philippe Varin
2_ Grégoire Olivier
6 7 3_ Roland Vardanega
4_ Jean-Philippe Collin
5_ Jean-Marc Gales
2 3 6_ Frédéric Saint-Geours
7_ Isabel Marey-Semper
8_ Denis Martin
11 1 12 14 9_ Jean-Claude Hanus
10_ Liliane Lacourt
11_ Claude Vajsman
8 15 16 12_ Vincent Rambaud
13_ Jean-Christophe Quémard
14_ Daniel Marteau
4 13 10 5 9 15_ Alain Sartoris
16_ Pascal Henault

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

/ 9
10 / OUR GROUP > Investor Relations
INVESTOR RELATIONS
IN 2008
A toll-free number was created to provide
continuous information for individual
shareholders and Société Générale
became Peugeot S.A.’s registrar as part
of a rationalisation process.
Investor Relations: Toll-free
number for calls originating
from a lanoline in France
0 800 424 091
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
More than ever, transparent communication
with all shareholders – be they French or for-
eign, individual or institutional – is a priority for
PSA Peugeot Citroën. As a result, the Group
provides regular information through appropri-
ate channels and organises meetings and
events to nurture direct relations.
A commitment to
permanent dialogue
–
PSA Peugeot Citroën’s investor relations team
keeps in close contact with shareholders and the
financial community throughout the year in order
to present the different facets of the Group’s busi-
ness, as well as its strengths and challenges, with
the goal of fostering mutual understanding and a
relationship of trust. In addition to results presenta-
tions and the Annual Meeting, institutional investors
and financial analysts in Europe, the United States
and Asia have the opportunity to attend meetings
on targeted topics. The investor relations team
also participates in various conferences.
PSA Peugeot Citroën organises meetings outside
the Paris area to meet with individual investors and
present the Group and its strategy. Plant tours,
such as the 2008 visit to Sevelnord for individual
investors and the Poissy visit for institutional inves-
tors, are another way to showcase the Group’s
manufacturing performance. In the same vein, the
Group was able to highlight advances in its prod-
uct strategy with an exclusive presentation of the
Citroën C3 Picasso for financial analysts at the
C42 showroom on the Champs-Élysées.
Individual investors can reach the investor relations
team 24/7 at communication.financiere@psa.fr.
A toll-free number has also been set up for calls
originating from a lanoline in France.
In-depth, easily accessible
information
–
PSA Peugeot Citroën is particularly attentive to
the quality, transparency and accessibility of its
financial information. Individual shareholders,
institutional investors and financial analysts can
access a broad range of documents on the
Group’s regularly updated website. Files avail-
able for downloading include the Sustainable
Development and Annual Report, the Registration
Document, press releases and letters to share-
holders. Additional information on the Group’s
sustainable development approach is posted on
a dedicated site.
 / 11

SHAREHOLDER BASE EXERCISABLE VOTING RIGHTS, BY SHAREHOLDER

(at 31 December 2008) (at 31 December 2008)
– –
Treasury stock Peugeot family Other foreign institutions Peugeot family
3.07% 30.30% 24.01% 45.10%

Other foreign Barclays Plc

institutions (total holding)
30.61% 1.87%

Employees Other French

Barclays Plc
2.76% institutions
(total holding) 18.56%
2.38% Other individual
shareholders
Employees
Other French 6.09% 3.80%
institutions
23.66% BNP Paribas 1.13% BNP Paribas 1.77% Other individual
shareholders 4.89%

SHARE DATA DIVIDEND PER SHARE (in euros)

– –
ISIN: FR0000121501 • Socially responsible investing: ASPI 2006 2007 2008
Listing: Eurolist continuous trading – Eurozone, FTSE4Good, FTSE4Good
Environmental Leaders Europe 40 Index®, Net 1.35 1.50 0
NYSE Euronext Paris, Compartment A
Bloomberg ticker: UG FP Ethibel Sustainability Indices (ESI)
In light of 2008’s results and the priority need
Other markets: Eligible for: Deferred settlement under to allocate financial resources to supporting
• United States: Traded as American the SDR system and inclusion in French PEA the product plan, driving business development
Depositary Receipts (ADRs) on OTCQX stock savings plans and strengthening the Group’s cash position,
(ticker PEUGY US), with one ADR shareholders at the Annual Meeting on
Closing price on 31 December 2008:
representing one share of common stock 3 June 2009 were asked to waive the payment
€12.15
• Europe: Listed on Euronext Brussels of a dividend with respect to 2008.
and SEAQ International – London Market value at 31 December 2008:
€2.84 billion
Listed in the major indexes:
• Euronext and Sector: CAC 40, SBF 120,
2009 INVESTOR CALENDAR
Weighting in the CAC 40 index
SBF 250, Euronext 100, Dow Jones Euro
–
at 31 December 2008: 0.36%
3 June:
Stoxx Auto
Annual Shareholders’ Meeting
29 July:
Performance of the Peugeot S.A. Share Versus First-half 2009 results
the CAC 40 Index and the DJ Euro Stoxx Auto Index 21 October:
(31 Dec. 2007 – 31 March 2009) Nine-month sales and120 revenue
–
120 CONTACT INFORMATION
100
–
100 Shareholders wishing
80 to receive financial
information on a regular basis may register
80 at Company headquarters:
60
Peugeot S.A. Investor Relations
60
75, avenue de la Grande-Armée
75116 Paris, France
40
40
E-mail: communication.financiere@psa.fr
20
Investor Relations:
20
Toll-free number for calls
J F M A M J J A S O N D J F M A originating from a lanoline
J Fin France
M A M J J A
2008 2009 2008

Basis 100 Peugeot S.A. share CAC 40 DJ Euro Stoxx Automobile

0 800 424 091
12 / OUR GROUP > Key Figures

KEY FIGURES
PSA Peugeot Citroën’s performance in 2008 varied sharply from the
first half to the second:
- In the first six months, worldwide sales rose 4.6% and operating
margin widened to 3.7%.
- The second half was shaped by collapsing demand and rising
inventories. In response, PSA Peugeot Citroën massively reduced
output in the fourth quarter and focused on drawing down inde-
pendent dealer network inventory. These two measures had a
very negative impact on profitability. This led the Group to
launch new restructuring plans in both the Automobile Division
and at Faurecia, resulting in nonrecurring operating expense of
€917 million.

CAP 2010 COMPETITIVENESS PLAN

–
• 180 projects launched since 2007,
of which one-third already implemented
• €1.4 billion in savings in 2008
• Warranty costs down 42% in 2008 compared with 2006

2,079,100 263,300
WORLDWIDE SALES IN 2008
(BY REGION)
– in Western Europe in Central and Eastern

3,260,400
Europe and Russia

vehicles sold worldwide (down 4.9%)

263,300
in Latin America
120,900
in Africa and the Middle East
202,600
in Asia Pacific
plus 300,200 vehicles
assembled in Iran

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 13

Résultat net
Résultat
part net partMargeEffectifs
bruteMarge
d’autofinancement
brute d’autofinance
Chiffres d
Effectifs
NUMBER Effectifs
OF EMPLOYEES Chiffres d’affaires
Chiffres d’affaires
REVENUEs du groupe du groupe
RECURRING et investissements
OPERATING et investissements
INCOME (hors R&D)(hors R&
(AS OF 31 DECEMBER) (IN € MILLIONS) (IN € MILLIONS)
– – – 207,800 58,676
201,700
58,676 58,676 885 885 2007 2008

13,157
73,500
207,800 207,800 3,515 3,515

71,800
201,700 201,700 54,356 54,356

13,157

13,157
73,500

73,500

Automobile Division 858 (225)

12,713

12,713
71,800

71,800

Other Businesses 2,380 894 775

2,380
2,079 2,156
2,079 2,156
Total
PSA Peugeot Citroën 1,752 550

129,900
134,300

45,519
n Automobile n Automobile
129,900

129,900

Division Division
134,300

134,300

41,643

41,643
45,519

n Other 45,519 n Other (343) (343) 2007 2008 2007

Businesses Businesses
2007 20082007 2008 2007 20082007 2008 2007 2007 2007 2008
2007 2008

2008 2008
PROFIT/(LOSS) ATTRIBUTABLE WORKING CAPITAL PROVIDED BY OPERATIONS Dépenses
AUTOMOBILE de R&D
DIVISION
Résultat
Dépenses de
TO EQUITY Résultat
net part
Dépenses net
R&D de R&D
HOLDERS OF THE partMarge
PARENT bruteMarge
AND brute
CAPITAL d’autofinancement
d’autofinancement
EXPENDITURE (EXCLUDING R&D) et investissements
CAPITAL EXPENDITURE
affaires du groupe
(IN € du
MILLIONS) groupe
et investissements
et investissements et et investissements
investissements (hors
(manufacturing R&D)
and (hors
sales R&D)
companies) AND R&D EXPENSE
de l’activité automobile
– (IN € MILLIONS) (IN € MILLIONS)
de l’activitéde
automobile
l’activité automobile – –
885 885 3,515 3,816
54,356 3,515 3,507
3,816 3,816
12,713

3,507 3,507
2,380 2,380
2,079 2,156
2,079 2,156

n Working capital
provided by operations
41,643

(343) (343) n Capital expenditure

(excluding R&D)
2008 2007 2007 2007 2007
2008 2008 2007 2008

2007 20082007 2008

2008 2008

BALANCE SHEET STRUCTURE WORLDWIDE SALES OF LOW CO2

(IN € MILLIONS) EMISSION VEHICLES
– –
2007 2008 2008 Sales
Equity 14,555 13,277 Vehicles emitting less than 140 grams of CO2 per km 1,161,000
Net financial position
Vehicles emitting less than 130 grams of CO2 per km 921,000
of the manufacturing
and sales companies 1,404 (2,906) Vehicles emitting less than 120 grams of CO2 per km 673,000

4 R&D
centres 2 test
centres 2 design
centres
14 / OUR GROUP > The Year’s Highlights

Peugeot and Citroën

Models & Launches
The Peugeot 308 family
keeps growing
In May 2008, Peugeot launched
the extremely driveable 308 SW,
with its spacious, bright interior. It also
announced that a sporty concept car,
which has been well received in the
European media, will go into production.
Introduced in March 2009, the new
308 coupé-cabriolet has inherited
the exceptional handling that earned
the Peugeot 308 Germany’s prestigious
“Golden Steering Wheel” award.

6
NEW CITROËN
C3 PICASSO SPACE BOX
–
Unveiled at the 2008 Paris Motor Show,
the C3 Picasso has now arrived in showrooms.
This new generation MPV packs a spacious
interior in a small package. The highly modular,
fuel-efficient C3 Picasso is destined to transform
its segment, as did the C4 Picasso and Grand
C4 Picasso before it, becoming the best-selling
MPVs in Europe in 2008. In March 2009, Citroën
presented a C3 Picasso concept car with
the latest version of the Stop & Start System,
an electronic gearbox and an emissions level
of just 110 grams of CO2 per km. models launched in China
Four new Peugeot and Citroën models
rolled off the line at the Wuhan plant in 2008.
Peugeot brought the 307 hatchback
and 207 notch back to the Chinese market
while Citroën added its new C-Élysée
and C-Quatre. In addition, Peugeot began
importing the 207 cc and Citroën
the Grand C4 Picasso to meet Chinese
demand for distinctive automobiles.
Both are benchmark models in their
respective segments.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 15

Citroën Nemo and

Peugeot Bipper voted
“Van of the Year”
The Citroën Nemo and Peugeot Bipper
won the prestigious “International Van
of the Year” award for 2009 at the 62nd
International Commercial Vehicles Show
in Hanover, Germany.

LEISURE ACTIVITY AND COMMERCIAL VEHICLES

NEW GENERATION BERLINGO AND PARTNER
–
More than 3.5 million Citroën Berlingos
and Peugeot Partners have rolled of
the line since 1996, and the vehicles
are as popular as ever. In 2008, a new
generation was introduced integrating
the strengths of the earlier models –
multifunctional, robust and easy-
to-use – while offering greater
comfort and roominess. The previous
generation models remain in the
catalogue as the Berlingo First and
the Partner Origin.

PEUGEOT LAUNCHED THE 3008, ITS First COMPACT

BUT SPACIOUS CROSSOVER FITTED WITH EXCLUSIVE
TECHNOLOGIES LIKE THE NEW TRACTION ENHANCING THE CITROËN C5 AND C5
GRIP CONTROL SYSTEM. TOURER, LAUNCHED IN
MARCH AND APRIL 2008,
HAVE RECEIVED
NUMEROUS AWARDS.
THE C5, IN PARTICULAR,
WAS VOTED IMPORT
LATIN AMERICA CAR OF THE YEAR IN
INTRODUCTION OF THE 207 RANGE GERMANY AND JAPAN.
–
In 2008, Peugeot introduced three-door, five-door,
SW and notch back versions of the 207 Mercosur.
The entire range is manufactured at the
PSA Peugeot Citroën plants in Buenos Aires,

1 million
Argentina and Porto Real, Brazil.

Peugeot 107s, Citroën C1s and Toyota Aygos

have already been produced at the shared
Toyota/PSA Peugeot Citroën TPCA plant in the
Czech Republic. These compact models, which were
restyled in 2008, emit only 106 grams of CO2 per km.
16 / OUR GROUP > The Year’s Highlights

In March 2009, PSA Peugeot Citroën

and Mitsubishi signed a memorandum
of understanding to collaborate on an electric
vehicle for the European market based
on the Mitsubishi i-MiEV. The vehicle will be
marketed by Peugeot at the end of 2010.

DIESEL HYBRIDS
HYbrid4 unveiled
at the Paris Motor Show
The Group has introduced in city driving. It also adds
its HYbrid4 diesel hybrid all-wheel drive capability
technology to the public thanks to an electric motor
with the Citroën Hypnos mounted on the rear axle
and Peugeot Prologue assembly. The hybrid
concept cars. The vehicle solution will be available in
takes advantage of 2011 on premium Peugeot
the HDi diesel engine’s and Citroën models that
fuel efficiency on the will offer significantly
open road and the electric lower fuel consumption
power train’s benefits and CO2 emissions.

Innovation &
Technologies
PETROL ENGINES
DEVELOPMENT OF A COMPACT, EFFICIENT 1 l ENGINE
–
The Group has announced the development of a new family of three-cylinder,
1-litre, 70 to 100 hp petrol engines that will significantly reduce fuel consumption
and CO2 emissions. In fact, emissions will fall below 100 grams per km with
no additional technology. A new production unit for these engines, located
at the Trémery plant in France, will be operational in 2011.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 17

France’s leading
filer of patents
With 961 patent applications in 2008,
PSA Peugeot Citroën was France’s leading
patent filer for the second year in a row.
Most concerned improvements to petrol
and diesel engines, the deployment of electric
and hybrid technologies and road safety.
The Group devoted €2.1 billion to R&D in 2008.

FOR THE SECOND YEAR

IN A ROW, THE THP 1.6-LITER
PETROL ENGINE WAS VOTED
“INTERNATIONAL ENGINE
OF THE YEAR” IN THE 1.4
TO 1.8 LITRE CATEGORY.

TELEMATICS SERVICES
FOR OPTIMISED FLEET MANAGEMENT
–
Peugeot and Citroën have launched a new remote fleet
management service called Active Fleet Data. The service’s
interp@rc software provides fleet managers with general

3
information and mechanical updates twice a week and
immediately sends an e-mail in the event of mechanical Particulate filter
problems or safety alerts.
million Peugeots
and Citroëns equipped
Introduced by PSA Peugeot Citroën
in 2000, the particulate filter set
a new standard for diesel engines
in Europe. Today, 22 of the Group’s
vehicle families are equipped with
the particulate filter, for one of the
broadest deployment levels among
European carmakers.

Endurance
908 HY: A NEW SECRET WEAPON
–
In 2008, Peugeot Sport presented
the 908 HY demonstrator with
a kinetic energy recovery system
(KERS) at the finale of the Le Mans
Series at Silverstone. The 908 HY
points to what could be the brand’s
next secret weapon in endurance
racing. Peugeot will enter a particulate
filter-equipped 908 HDi in the 2009
Le Mans race.
18 / OUR GROUP > The Year’s Highlights

Citroën’s new corporate identity: DRIVING PLEASURE

Créative Technologie
For its 90th anniversary, Citroën has started
a new page in its history. The brand’s image
has undergone an in-depth transformation
as Citroën highlights its creativity and ability
to innovate. The change is embodied in a
new visual identity; a logo with free-flowing,
three-dimensional chevrons; a new signature
(“Créative Technologie”) and a new
approach to the customer relationship.
In keeping with this spirit, Citroën has also
launched a new line of distinctive models
known as “DS” for Different Spirit. The DS3
will be the first to hit the market, in early
2010, followed by the DS4 and DS5. These
vehicles stem directly from work conducted
under the CAP 2010 plan.
NEW 6-SPEED GEARBOX
–
In April 2008, the Valenciennes
plant began producing a new
compact 6-speed manual gearbox,
first offered on the Peugeot 308.
The gearbox combines driving
pleasure with lower fuel consumption
and fewer greenhouse gas emissions.

Diversity Label
In early 2009, PSA Peugeot
Citroën became one of the first
companies in France to obtain
the government’s new Diversity
Label in recognition of
the Group’s policies to foster
equal opportunity and prevent
discrimination.

The Group
IN OCTOBER 2008, PSA PEUGEOT
CITROËN OPENED ITS CHINA TECH
CENTre IN SHANGHAI. WITH THIS
NEW ENGINEERING AND DESIGN

& its Brands

CENTre, THE GROUP WILL BE ABLE
TO DEVELOP PEUGEOT AND CITROËN
VEHICLES LOCALLY THAT ARE
ALIGNED WITH CHINESE CUSTOMERS’
EXPECTATIONS.

2
million saplings have been planted over the
last ten years in the carbon sink developed
by Peugeot and France’s national forest service,
ONF, in the Amazon basin. The 2,000 hectares
replanted with local species have already
sequestered 51,000 metric tons of CO2.
This life-size laboratory is enabling scientists
to verify the relationship between reforestation,
carbon capture and climate change.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report


New voluntary separation plan
In response to the financial and
economic crisis that has battered
the automobile industry, the Central
Works Council met at a special
meeting in December 2008 to consider
the proposed redeployment of jobs and
capabilities in the Automobile Division
in France. The plan covers 3,550 non-
production staff at all sites and in all
PSA Peugeot Citroën
at the Planète Durable show
In April 2009, PSA Peugeot Citroën
participated in the Planète Durable
sustainable development show in Paris
for the second year in a row. The Group
presented a Peugeot 207 that emits just
IN JUNE 2008, OSAMU MASUKO,
PRESIDENT OF MITSUBISHI MOTORS,
THIERRY PEUGEOT, CHAIRMAN OF THE
SUPERVISORY BOARD OF PSA PEUGEOT
CITROËN, ROLAND VARDANEGA,
EXECUTIVE VP MANUFACTURING
AND COMPONENTS, AND ANATOLY
ARTAMANOV, GOVERNOR
OF THE KALUGA REGION LAID THE
CORNERSTONE FOR THE JOINT
MITSUBISHI/PSA PEUGEOT CITROËN
PLANT IN KALUGA, RUSSIA.
departments and includes incentive
measures based on voluntary
separation. This primarily involves
accelerating departures that were
scheduled for the coming months
or years, by offering retirement
with full benefits, business-creation
support, career-reorientation leave
and other solutions.
99 grams of CO2 per km to illustrate the
effectiveness of its work on conventional
power trains. It also spotlighted the Citroën
C-Cactus concept car with an electric
motor and an “eco-driving” simulator.
/ 19
ANNIVERSARY
VIGO PLANT TURNS 50
–
In 1958, the Vigo, Spain plant manufactured
400 Citroën 2CV AZUs. In the 50 years since
then, nine million vehicles have rolled off
the plant’s lines. The King Juan Carlos of Spain
attended the 50th anniversary celebrations
on 15 July 2008 along with his wife, Queen
Sofia, and Thierry Peugeot, Chairman of
the Supervisory Board. PSA Peugeot Citroën
is a major player in the local economy, ranking
as the leading enterprise in the Galicia
autonomous region.
WITH 11 VICTORIES IN 2008, SÉBASTIEN LOEB
AND DANIEL ELENA WON THE DRIVER AND CO-DRIVER
CATEGORIES IN THE FIA WORLD RALLY CHAMPIONSHIP
FOR THE FIFTH YEAR IN A ROW. CITROËN ONCE AGAIN
SECURED THE MANUFACTURER’S TITLE. IT’S HARD TO SAY
WHO COULD BEAT THE C4 WRC TEAM IN 2009…
The Peugeot Lion
still roars at 150
Émile Peugeot registered his lion trademark,
with or without an arrow, in November 1858.
Today, the lion is recognised around the world
as the symbol of Peugeot products, which are
sold in more than 150 countries.
20 /

Close-up
Rear light of the Peugeot 3008

OUR
ambition
 / 21

PSA Peugeot Citroën has what it takes to meet the challenges

of the global economic environment and the specific situation facing
the automobile industry. The Group’s ambition is to enhance its
global scope, achieve operational excellence and offer vehicles
that anticipate customer expectations in all of its markets.

A global player
Rank among the world’s leading
broadline carmakers.

Product and services Efficiency

Anticipate customer needs Be a manufacturing benchmark
and desires and have post-oil by gradually deploying
cars in the pipeline. Lean processes across
the enterprise.

Peugeot 3008

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

22 / OUR AMBITION > Fundamentals driving our ambition
FUNDAMENTALS DRIVING
OUR AMBITION
IN 2008 CAP 2010 delivered total
The Lean approach was extended from cost savings of €1.4 billion.
manufacturing to the entire enterprise.
In a particularly difficult business environment,
PSA Peugeot Citroën must not only overcome
the recession but also prepare the future and
enhance its strengths so that it can quickly and
sustainably return to profitable growth.
Rapid response
to the recession
–
Thanks to measures to reduce costs and over-
heads initiated in 2007 as part of the CAP 2010
plan, PSA Peugeot Citroën was in a healthy situ-
ation when the economic and financial crisis
began. Like all other carmakers, the Group has
large cash needs. For this reason, it has given
priority to bolstering its cash and cash equiva-
lents, both by pursuing in-house efforts (notably
inventory drawdowns, which were well under way
in early 2009) and by seeking out external financ-
ing. To prepare for a prolonged recession in its
markets, PSA Peugeot Citroën also moved for-
ward its 2010 fixed-cost reduction objectives to
2009. The Group saved nearly €1 billion in 2007
and €1.4 billion in 2008. It intends to pursue these
efforts in 2009.
Continuous improvement
MORE THAN 216,000
UNITS SOLD IN 2008 in-house
The Citroën C1 and
Peugeot 107 emit just
–
106 grams of CO2 The Lean approach, which has been extended
per km. from manufacturing to the entire enterprise,
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
involves doing things better, faster and cheaper
over the long term. The approach helps reduce
costs by wringing out all types of waste. Improve-
ment methods are adapted to each area of the
business and emphasise customer satisfaction.
To deploy the approach, employees are trained in
Lean principles and work in teams. The Lean pro-
cess gets people to look differently at organisa-
tions, operating methods, areas of difficulty and
behaviours, notably to improve workplace
safety.
Responsible workforce
management
–
Even in a tough economy, PSA Peugeot Citroën
remains committed to good labour relations. The
Group continues to practice responsible work-
force management to prepare the future, as
employee training and skills development will
clearly play an important role in improving perfor-
mance. Agreements signed in December 2008
and April 2009 reflect these principles. By propos-
ing a voluntary separation plan and training pro-
grammes during periods of low output, these
agreements are designed to respond responsibly
to the unavoidable adjustments required by the
recession and to long-term changes in the auto-
mobile industry.

Partnerships
and a solid footprint
– new concepts, such as Peugeot’s 3008 cross-
In addition to a solid, long-term presence in West-
ern Europe, PSA Peugeot Citroën has established
operations in a number of regions with high growth
potential such as China, Latin America and Cen-
tral and Eastern Europe. The Group intends to
expand into new markets to become a truly global
broadline carmaker.
PSA Peugeot Citroën is also known for its ability to
carry out long-term strategic cooperation projects
with other automobile manufacturers. This strategy
makes the most of each partners’ innovation capa-
bilities while reducing costs by sharing resources
from the development stage on through to joint
production of components or vehicle bases.
Vehicles for all needs
– ship position in low CO2 emission vehicles. Its
In dealing with the recession, PSA  Peugeot
Citroën has decided to remain on the offensive on
both the technological and marketing fronts. Proj-
ects under way have been maintained and new
ones initiated with the goal of offering products
that respond effectively to the challenges facing
the automobile industry today. The Citroën brand
reinvented itself in February 2009, unveiling a new
logo and a new signature. Peugeot will follow suit
later on in the year.
The brands’ new identity is supported by a
renewed and enhanced product plan. Peugeot
/ 23
and Citroën cater to key segments with compact A PIONEER IN THE
COUPÉ-CABRIOLET
city cars, sedans and MPVs that meet a very wide
range of driving needs. They have also embraced
BODY STYLE, Peugeot
remains the European
leader in this segment.
over, that help broaden the customer base. At The new 308 cc
confirms the brand’s
PSA ­Peugeot ­Citroën, satisfying customers means reputation.
making vehicles for different needs in terms of
use, engine type and fuel options. With this in
mind, the Group develops and sells vehicles
internationally to fit each market’s characteristics
and price profile. The deep commercial vehicle
line-up adds to its marketing momentum, with
PSA Peugeot Citroën ranking as the European
leader in this segment.
Among the various issues facing the automobile
industry today, environmental concerns are
undoubtedly the most demanding. The challenge
for PSA Peugeot Citroën is to continue offering
increasingly environmentally friendly vehicles
while paving the way for technological break-
throughs. In 2008, the Group confirmed its leader-
engineers are working on several synergistic
solutions in this area to keep PSA Peugeot Citroën
ahead of the curve in terms of products and serv­
ices while recognising the diversity of its markets
and customers.
24 / OUR AMBITION > Sustainable Development Approach

Sustainable
Development Approach
In 2008 PSA Peugeot Citroën was awarded
The Group deployed its 10 sustainable Silver Class status in the 2009 Sustainability
development objectives for 2008-2011. Yearbook published by SAM and PWC.

10 sustainable development objectives

for 2008-2011
–
ENVIRONMENT
CO2 emissions
1 Continue to be the leading producer
of low-emission vehicles
2 million vehicles emitting less than 120 grams
of CO2 per km sold between 2007 and 2010
Eco-design
2 Sharply increase the proportion of green
materials in Peugeot and Citroën vehicles
Raise the share of green materials to 20%
of polymers contained in a vehicle in 2011
Environmental management
3 Reduce the average energy used per vehicle
produced in our manufacturing facilities
2.1 MWh/car in 2010
Socially responsible investing
6 Make sure PSA Peugeot Citroën
is included in the major SRI indices
3 major international indices
Stakeholder dialogue
7 Lead constructive dialogue with civil
society representatives
SOCIETY
Road safety
8 Broadly deploy telematics services
to improve user safety
1 million enabled vehicles on the road
in 10 European countries by 2011
Urban mobility
9 Finance innovative mobility solutions

SOCIAL RESPONSIBILITY Customer respect

4 Extend PSA Peugeot Citroën’s social 10 Implement the PSA Peugeot Citroën
responsibility commitment worldwide Responsible Communications Charter

GOVERNANCE
Supplier responsibility
5 Deploy the supplier guidelines concerning
PSA Peugeot Citroën’s social and
environmental responsibility requirements
Involve the top 500 suppliers
in the process by 2010

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report


PSA Peugeot Citroën’s sustainable develop-
ment approach is derived from a real desire to
understand and effectively manage the environ-
mental and social issues related to automobile
use. Driven by the Group’s commitment to social
responsibility, proven innovation capabilities
and strategy for the years ahead (which includes
maintaining environmental leadership), this
approach is designed to help PSA Peugeot
­Citroën return to profitable growth.
A product that raises
numerous challenges
– Greenhouse effect /Air quality
By enabling individual mobility, automobiles are
an intrinsic part of economic and social develop-
ment. At the same time, they present challenges
throughout their lifecycle for society and the envi-
ronment. The degree to which these challenges
are taken into account will have a major impact on
future generations, and the different possible
responses are at the centre of PSA  Peugeot
­Citroën’s relations with its stakeholders. Details of
these responses are provided in this report.
The three main challenges facing PSA Peugeot
Citroën are the greenhouse effect, road safety and
urban mobility. That said, all key issues are
reviewed by the appropriate internal teams, who
take action when necessary.
/ 25
Primary focus: cars Sustainable
development
on the road objective no.6
–
During an automobile’s lifecycle, the greatest Make sure PSA Peugeot
impact on the environment and society comes when Citroën is included
the car is on the road. Although the way a vehicle is
used depends on the car owner, it is PSA Peugeot
in the major SRI indices
–
Citroën’s responsibility to design products that are 3 major international indices.
as safe and environmentally friendly as possible.
The greenhouse effect, road safety and urban
mobility are global challenges. While the Group
can propose technological solutions, everyone in
the community must be involved to devise an
effective response.
The greenhouse effect is a natural phenomenon
that keeps the Earth at a liveable temperature.
However, emissions of CO2 and other greenhouse
gasses (GHG) from human activity have risen
steadily since the mid-19th century, adding to the
natural effect. There is a broad consensus in the
scientific community that the Earth’s average tem-
perature is rising as a result of this situation.
Because internal combustion engines burn fossil
fuels, the transportation industry is a significant According to UN forecasts,
60%
source of GHG emissions. For PSA Peugeot Citroën,
the major challenge is to continue reducing its
vehicles’ contribution to the greenhouse effect.
The health consequences of air pollution are also
becoming a key concern, especially in large city
centres. That’s why the Group is working to elimi- of the world’s
nate regulated contaminants like NOx, HC and population
particulates from tailpipe emissions and to ulti- will live in cities in 2030
mately introduce zero-emission vehicles. compared with 50% today.
26 / OUR AMBITION > Sustainable Development Approach

SINCE 2004, the Group has provided

information on its sustainable development
approach in French and English at
www.sustainability.psa-peugeot-citroen.com

Road safety / Urban mobility The number and size of cities worldwide is

Although there is still room for improvement in the
developed countries, the issue of road safety has
shifted geographically as emerging economies
see more and more road deaths. The loss of life
and collectively assumed cost of road risk affects
these countries’ economic growth. Today’s crash
protection systems are greatly optimised and are
gradually being extended to all Peugeot and
Citroën ranges sold worldwide. As a result, driver
training, better infrastructure and faster emer-
gency response are now key factors in solving the
equation of road safety.
Standards and commitments
– The Group has made great strides in managing
In implementing its sustainable development and committed to these principles in 2003.
approach, the Group refers to a structured • CBCSD: PSA Peugeot Citroën is also a
set of international or industry standards member of the China Business Council for
and benchmarks, including: Sustainable Development.
• International Financial Reporting Standards
(IFRS) for accounting In addition, the Group has developed
• ISO 9001 for quality its own benchmarks and guidelines:
• ISO 14001 for the environment • Ethics: Code of Ethics
• The third generation (G3) Sustainability • Social responsibility: Global Framework
Reporting Guidelines issued by the Global Agreement on Social Responsibility
Reporting Initiative for reporting • Purchasing: PSA Peugeot Citroën’s
• The Global Compact for ten universally requirements regarding social and environmental
accepted principles in the areas of human responsibility with respect to its suppliers
rights, labour, environment and anticorruption. • Marketing and advertising: Responsible
PSA Peugeot Citroën joined the Global Compact Communications Charter
constantly growing, notably in the emerging
economies. Non-optimised road transportation
creates urban congestion that is both costly and hard
on the environment. From PSA Peugeot Citroën’s
perspective, the solution lies in more widespread
use of low-emission vehicles, as well as in more
effective policies for traffic management, alternative
transportation systems and land-use planning.
Making progress in all areas
–
PSA Peugeot Citroën assumes its responsibilities
throughout its products’ lifecycle, from the drawing
board to the production line and from the show-
room to end-of-life disassembly and recycling.
these challenges and continues to address them
in a spirit of continuous improvement.
Industrial environment / Human resources
policy
Although automobile manufacturing in itself does
not entail any major environmental risks, series
production requires large facilities that use water
and energy and generate waste. PSA Peugeot
Citroën has worked for many years to reduce its
plants’ impact, notably by deploying best avail-
able technology at an acceptable cost.
Automobile production is labour intensive and
traditionally uses a largely male workforce. In
response to this situation, PSA Peugeot Citroën

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report


SUSTAINABLE DEVELOPMENT GOVERNANCE AT PSA PEUGEOT CITROËN
–
Supervisory Board
Managing Board
Sustainable Development Department
Corporate functions and operating units
has made improving working conditions and pro-
moting equal opportunity and diversity a major
focus of its global human relations policy. In the
current period of economic and financial crisis,
responsible management of jobs and skills sets is
more than ever a top priority.
Organisation and control
– www.sustainability.psa-peugeot-citroen.com
The Group’s sustainable development approach
is designed to achieve a fair balance between
profitability and environmental and social respon-
sibility. It is an integral part of the corporate gov-
ernance system.
The Sustainable Development Department, which
reports directly to a member of the Executive
Committee, has pursued this structured approach
since 2003. It works with a network of front-line
correspondents in all the Group’s departments
who are experts in different areas of corporate
responsibility (human resources, environmental
management, purchasing, marketing, sponsor-
ship, etc.). The Department convenes a Sustain-
able Development Committee every month to
meet with the network’s members.
The Group has defined 10 sustainable develop-
ment objectives for 2008-2011 that have been
translated into annual action plans. This roadmap
has been validated by the Executive Committee,
which tracks the objectives on a quarterly basis.
/ 27
Sustainable Development Committee
Sustainable development Sustainable
development
reporting objective no.7
–
The Group reports on its sustainable development Lead constructive
performance annually on the basis of operating
indicators. The audited results are presented in
dialogue with civil
society representatives
this report, in the 2008 Performance Indicators
supplement (see CD-Rom) and at
–
In 2007, the Group decided to include information
in the annual report on its sustainable development
policy, achievements and performance indicators
to demonstrate the importance of sustainable
development in its overall strategy, as well as its
commitment to giving all stakeholders easy
access to the data. For the fifth year in a row, the
Group’s reporting follows the Sustainability
Reporting Guidelines issued by the Global
Reporting Initiative, with the goal of continuously
improving transparency. The third generation
(G3) guidelines have been applied for the past
three years.
28 /

Close-up
Rear light of the
Citroën C3 Picasso

OUR
BUSINESS
 / 29

With its extended, renewed line-up, PSA Peugeot Citroën provides ever

improving answers to meet customer expectations throughout the various
markets worldwide. Peugeot and Citroën deploy their skills in several key
segments, from compact city cars and MPVs to light commercial vehicles.
They have also moved to offer specific models outside Western Europe
and to expand into new segments such as crossover vehicles.

International
expansion
More than a third of unit sales
are generated outside
Western Europe.

Light commercial
Passenger cars vehicles
The Peugeot 207 The Group is European
and Citroën C4 Picasso are leader with nearly 20%
segment leaders in Europe. of the market.

Citroën C3 Picasso

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

30 / OUR BUSINESS > peugeot AND citroën
Peugeot
In 2008
1,904,000 vehicles
and 135,000 motorcycles
sold worldwide.
Peugeot In 2008
10,000
outlets worldwide.
14,800
employees.
Blue Lion
Peugeot offers 12 body styles
that sport the Blue Lion eco-
label for CO2 emissions of less
than 130 grams per km: the 107,
206+, 207, 207 cc, 207 SW, 1007,
308, 308 SW, 3008, 407, 407 SW
and Bipper Tepee.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
The Peugeot 207 was the best The Peugeot 207 Super
selling car in its category in Europe. 2000 swept the Monte
Peugeot’s extensive compact city Carlo IRC race, finishing
line-up includes the new 107, 206+, 1-2-3.
207 and 1007.
In 2008, Peugeot sold its 50 millionth car and
benefited from a solid presence in more than
150 countries thanks to its attractive line-up. In
2009, the brand will extend its market coverage
by introducing two vehicles in new segments.
Trust, passion
and inspiration
– Start technology. The second generation Stop &
In 2010, the Peugeot brand will celebrate 200 years
of existence, largely shaped by a passion for the
automobile. Over the past two centuries, Peugeot
has applied its innovative spirit to each era and
to drivers’ changing demands. By listening care-
fully to consumers, the brand has significantly
improved its quality of service over the past few
years. Peugeot is building on these accomplish-
ments to nurture a solid relationship of trust with
its customers.
Sustainable mobility for all
– its ranking at the top of the European coupé-
Offering mobility for all while keeping fuel con-
sumption and CO2 emissions under control is a
priority objective at Peugeot. The brand has put
together a competitive set of solutions to meet this
challenge with a broad range of bicycles, scooters
and cars. In Europe, Peugeot leads in vehicle seg-
ments that emit less than 120/130 grams of CO2
per km. In fact, one new car out of six sold in
Europe with emissions below 120 grams of CO2
per km is a Peugeot. To maintain and widen its
lead, the brand has committed to breakthrough
technologies. It pioneered in 1995 with an electric
version of the 106, the best selling car in its cate-
gory worldwide. Peugeot will roll out a new EV in
late 2010. In hybrids, the 3008 will be the first
Group vehicle to benefit from HYbrid4 technology,
less than two years after its launch. Peugeot is also
exploring micro-hybrid solutions, such as Stop &
Start will be widely deployed in the model ranges
starting in 2010.
A range filled with
remarkable models
–
Once again, the 207 was Peugeot’s most popular
vehicle of the year, with 468,300 units sold in 2008.
This performance made it the third best-selling
vehicle in Europe, all makes and models com-
bined. At the same time, the 207 cc consolidated
cabriolet segment. Peugeot added a SW body
style to the 308 family, which leveraged a very
good CO2 and fuel economy rating to achieve unit
sales of 290,100 in 2008. This lifted Peugeot’s mar-
ket share in the C-segment in Europe. Range
renewal continued in 2008 with the arrival of
the new 407 and 107. Commercial versions of the
new Partner and the Bipper were also brought to
 / 31

PEUGEOT 3008:

3
means it belongs
to the medium
compact range.

00
means it has
a high-roof
architecture.

8
means it is part
of the current
range generation.

market during the year, along with a Tepee version the 206, will help strengthen Peugeot’s position in
of both models for non-professional use. Peugeot the compact sedan segment. Positioned between
now boasts a full, consistent range of commercial the 107 and 207, the 206+ is a modern, entry-level
vehicles with five models adapted to different vehicle that offers an attractive set of features at a
needs and uses. competitive price. Peugeot also intends to build
on its success by introducing two vehicles for new
segments. The 3008, Peugeot’s first crossover,
Continued international combines the advantages of a sedan, an MPV and
expansion an SUV. The brand will also add a compact MPV
in autumn 2009.
–
Despite the very fraught economy, Peugeot sales
outside Western Europe rose again in 2008, by
13%. This represents a twofold increase since
2000, with sales outside Western Europe now
accounting for 43% of the total. The Russian sub-
sidiary successfully ramped up during the year,
lifting its sales by 83%. Peugeot’s international QUALITY: AN INTEGRAL
momentum is also supported by the sale of spe- PART OF THE PEUGEOT
cific ranges in the brand’s priority growth regions. NETWORK
–
Peugeot organises an awards
Renewal and conquest ceremony at which trophies
in 2009 for greatest improvement and
noteworthy achievement in service
– quality are handed out for new
In 2009, Peugeot is launching several new models car sales and after-sales service.
made in France. The 308 cc picks up where the
307 cc left off, embodying the legendary Peugeot
coupé-cabriolet know-how that has resulted in
sales of more than 650,000 units. The model also
adds a third body style to the highly recognisable
308 family. The launch of the 206+, successor to
32 / OUR BUSINESS > peugeot AND citroën

Citroën
In 2008 Leader in compact MPVs As World Rally Championship winner
1,356,000 vehicles sold in Europe and solid position in four times in the Manufacturer category
worldwide. low CO2 emission vehicles. and five times in the Driver and Co-Driver
categories, Citroën has earned a special
place in the history of motor sports.

Backed by 90 years of innovation and creativity
in automobiles, Citroën benefited from the
strengths of its deep and modern line-up of
passenger cars and commercial vehicles in
2008. This set the stage for a new page to be
written in the brand’s history in 2009, shaped
more than ever by a spirit of technology and
creativity. This will be particularly evident in
solutions to preserve the environment.
Popular models
segment with several Airdream versions of the C5,
which emit less than 140 grams of CO2 per km.
With the Nemo, launched in February 2008, and
the new Berlingo, introduced in May, Citroën now
fields five light commercial vehicles. Nearly one in
five Citroëns sold worldwide is a light commercial
vehicle. The brand did not neglect markets out-
side Europe either, renewing its line-up with mod-
els like the C-Quatre and C-Élysée in China and
the C4 hatchback in Latin America.

–
Citroën was the European leader in compact
MPVs in 2008 thanks to the five- and seven-seat
C4 Picasso, which sold 188,000 units during the
year. The C3 Picasso “Space Box”, launched in
2009, expands the MPV range and gives the
brand added strength to enhance its leadership.
The new C5, available in sedan and tourer ver-
sions in April and June, exceeded objectives with
worldwide unit sales of 87,500 in 2008. The models
did particularly well in Italy, Germany, Great Britain,
France, Belgium and the Netherlands. The brand
also stepped up a gear in the corporate fleet
C5 AIRDREAM WITH
110 hp HDi ENGINE
AND PARTICULATE FILTER.
Citroën has created the
Airdream eco-label for
cars that emit 140 grams
of CO2 per km or less,
that are made in an
ISO 14001- certified plant
and that have an end-of-
life recovery rate of 95%.
Technologies to preserve
the environment
–
Citroën has always initiated accessible technolo-
gies that deliver an overall reduction in fuel con-
sumption and CO2 emissions. It will continue to
offer vehicles that address the need for low
running costs and environmental stewardship.
Electronic manual gearboxes have been widely
deployed throughout the line-up, equipping the
C1 through C4 sedans, the Nemo, C4 Picasso
and Grand C4 Picasso. This solution maintains
driving pleasure while reducing fuel consumption
by 3-5% in relation to a regular manual gearbox.
­Citroën has a solid position in the very low CO2
emissions segment (110 grams or less per km)
with its C1, which emits just 106 grams of CO2
per km. In 2008, the brand accounted for 23% of
sales in this segment in Europe. The C4, restyled
in second-half 2008, offers two new petrol engines

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report


and latest generation HDi diesel engines that sig-
nificantly improve its environmental performance.
As a direct result of this strategy, 30% of the ­Citroën
vehicles sold in Europe in 2008 boasted CO2 emis-
sions of 120 grams per km or less.
A future guided by creative
technology
– automobile design with the C-Cactus. The idea is
The DS3, the first model from the Different Spirit
(DS) line, will come to market in early 2010. A pre-
view was provided in February 2009 with the DS
Inside concept car. This new line of distinctive
models, which complements the traditional Citroën
line-up, is designed for customers interested in
style and driving pleasure but pragmatic when it
comes to features and price.
As part of its commitment to preserving the envi-
ronment, the brand will extend the second gene­
ration of Stop & Start technology—first presented
on the C2 and C3—to the entire line-up. The new
system leverages a combined alternator-starter to
stop and start the engine. It also recovers brake
energy. At the 2008 Paris Motor Show, Citroën
showcased a C3 Picasso HDi equipped with a
110 hp engine, Stop & Start technology and a six-
speed electronic manual gearbox that emits just
110 grams of CO2 per km.
Starting in 2011, Citroën will offer vehicles featur-
ing the HYbrid4 technology unveiled in 2008 on
the Hypnos concept car. This environmentally
/ 33
BIG ON THE INSIDE, SMALL
ON THE OUTSIDE
THE C3 PICASSO delivers
superior environmental
and cost performance with
innovative style. Its low CO2
emissions rival with the best
the competition has to offer.
friendly, executive range concept is propelled by CUSTOMER SATISFACTION
energy from an electric motor on the rear axle and ON THE RISE
from an HDi diesel engine. The Hypnos can cover –
100 km on 4.5 litres (equivalent to over 52 miles Over a year ago, Citroën implemented
per gallon) with CO2 emissions of less than a new policy and new action plans
120 grams per km. The DS5 will be the first Citroën to become a benchmark in service
model to benefit from this technology. quality. Initial results in 2008 were
particularly encouraging, with
In response to the widespread desire for “better”
consumption, Citroën is exploring new avenues in
remarkable gains in customer surveys
in France, Germany, Great Britain,
China and Latin America.
to focus on the car’s occupants while maintaining
only the features that are essential to their well
being. As a result, the C-Cactus has about half as
many components as a conventional vehicle. It uses
the most environmentally friendly technologies
available, all wrapped up in a clever package.
Citroën In 2008
8,000
outlets worldwide.
13,500
employees.
34 / OUR BUSINESS > 2008 PERFORMANCE

RESILIENCE IN
DECLINING MARKETS
In 2008 36.2% of the Group’s vehicles were
PSA Peugeot Citroën maintained sold outside Western Europe.
its global market share at 5%.

WORLDWIDE SALES BY REGION The global market for passenger cars and light In Spain, where the automobile market plummeted
(in thousands of units) commercial vehicles contracted by 5.4% in by 29.8%, Group registrations declined 30% to
– 2008 to 65 million units. Demand in Western 254,300 units. Market share for the year stood at
3,366 3,428 Europe slackened in the first half, while sales 19.1%, virtually unchanged from 2007 (19.2%).
3,260 in emerging markets continued to show strong In the United Kingdom, the Group pursued its
746 749 768 growth. In the second half, however, the eco- strategy of limiting the adverse sales impact of
nomic and financial crisis caused demand to the unfavourable pound/euro exchange rate
collapse in automobile markets around the throughout the second half. As a result, registra-
world, dragging down the Group’s final-quarter tions fell 17.1% to 237,200 units.
1,550 1,575 1,311 sales by 21% in Western Europe and 9% in In Italy, the 12.5% decline in Group registrations
emerging markets. Over the full year, world- to 235,700 was in line with the market’s overall
wide sales of assembled and CKD vehicles 12.7% decrease.
222 255 263
declined by 4.9% to 3,260,400, units.
364 312 421
215 266 263
237
31
240
32
203
31
Growth interrupted
2006 2007 2008
Markets hit hard in Western by recession in emerging
France Europe economies
Rest of Western Europe
Central and Eastern Europe and Russia
– –
Africa and the Middle East
In a European car and light commercial vehicle In most of the emerging automobile markets,
Latin America
market that fell 8.8% in 2008, PSA Peugeot Citroën demand contracted more or less sharply in the
Asia Pacific registrations contracted 8.6% to 2,130,900 units, second half as the global financial and economic
Other (temporary transit) of which 1,125,700 Peugeots and 1,005,200 crisis took hold. This situation directly impacted
­Citroëns. Market share for the year stood at 13.8%, PSA  Peugeot Citroën’s performance. In Latin
unchanged from 2007. In France, Group registra- America, the market experienced moderate full-
tions rose 1.9% to 794,200 in a market down 0.6%, year growth of 2%, reflecting a 14.4% increase in
for a market share of 31.6%. This performance the first half and an 8.4% decline in the second.
reflects Peugeot’s and Citroën’s solid positioning Peugeot and Citroën lifted their registrations in the
in fuel-efficient vehicles, sales of which were bol- region by 5.4% over the year to 259,000 units.
stered by a national feebate scheme. In a Chinese market that expanded by 5.1%,
In Germany, PSA Peugeot Citroën widened its Dongfeng Peugeot Citroën Automobile (DPCA)
market share by 0.2 points to 5.7%. Registrations saw its registrations decline 14.1% to 178,100 units
rose 2.1% to 189,500 in a market down 1.7%. due to falling sales of its core mid-range vehicles.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 35

ALTHOUGH THE
GERMAN MARKET
CONTRACTED IN 2008,
Group registrations
increased by 2.1%.

In Central and Eastern Europe, where the market
contracted by 1% over the full year (up 16% in
the first half but down 14.9% in the second),
PSA Peugeot Citroën registrations decreased by
3.3% to 191,000 for a steady market share of
7.2%. Registrations rose 67% in Russia to 60,300
units in a market that grew by a strong 13.6%.
Weathering the crisis
compact MPV segment, with nearly 188,000 units
sold. The Xsara Picasso’s strong showing (76,000
units sold) contributed to this leadership position,
which will be enhanced by the introduction of the
C3 Picasso in 2009.
PSA PEUGEOT CITROËN
In the light commercial vehicle market, the launch REGISTRATIONS BY CO2
of the Citroën Nemo and Peugeot Bipper, along EMISSIONS LEVEL IN 2008
with new versions of the Citroën Berlingo and (passenger cars in Europe)
Peugeot Partner, enabled the Group to extend –

with a vibrant line-up its market leadership in Western Europe, lifting

its share by 1.3 points to 19.9%. Light commer-
12.9%

– cial vehicle sales rose 4.9% over the year to

1%

In a very difficult business environment, the Group 456,500 units, of which 232,600 Peugeots and
32%*
leveraged the Peugeot and Citroën ranges’ 223,900 Citroëns.
strengths to defend its positions.
Demand is expected to be weak in many markets
For the third year in a row, PSA Peugeot Citroën in 2009, with sales forecast to decline 20% in
sold more than one million vehicles emitting less Europe alone. In response, PSA Peugeot Citroën
19.6%
than 140 grams of CO2 per km (1,161,000 units will leverage the solid strengths of its latest offer-
worldwide), thereby confirming its environmental ings – including the new C5 and the 308 range – 34.3%
leadership. and continue to launch new vehicles (C3 Picasso,
* Of which 11.4% emitting
3008, etc.) at a sustained pace to ensure that less than 110 grams per km of CO2.
Peugeot once again led the small car segment in its models are ever more closely aligned with
Europe thanks to the 206 and 207, which sold customer expectations in all markets.
> CO2 emissions in grams
760,600 units worldwide. The 107 provided an
per kilometre
added boost, with unit sales up 2.1% to 106,500
over the year – a performance that reflected the < 120
attractiveness of the model’s low running costs from 121 to 140
and low CO2 emissions. from 141 to 160
from 161 to 200
In the first full year on the market for the five-seat
from 201 to 250
C4 Picasso “visiospace”, the C4 Picasso range
was again the leader in the Western European > 250
36 / OUR BUSINESS > INTERNATIONAL EXPANSION
LATIN AMERICA
IN 2008 Introduction of the Peugeot 207
The Mercosur Business Unit’s scope was Mercosur range, made at Group
extended to cover all of Latin America. facilities in Argentina and Brazil.
5
In keeping with changes in the local automobile
markets, PSA Peugeot Citroën has pursued its
industrial, marketing and technological efforts
Peugeot to strengthen its position in Latin America. The
and Citroën Group took immediate measures in Novem-
models launched in Latin ber 2008 to respond to the sudden collapse in
America in 2008. demand, notably by adjusting output. The
Brazilian market alone was down 25% in
November from the year-earlier period.
UNIT SALES
(in thousands)
– Continued commercial
expansion
266
–
263
In Brazil, the region’s main market (up 14.1%),
Group registrations rose 17.7% to 151,000 units.
Registrations in Argentina grew by 2.5% to 81,700
units in a market that expanded by 7.8%. This
performance was driven in part by several new
2007 2008 model launches.
The Peugeot 207 Mercosur, developed for the
local market and produced in Argentina and
Brazil, was introduced in three-and five-door
hatchback, notchback, SW and Escapade off-
road versions. The restyled Citroën C3, with spe-
cific body components for the Latin American
market, arrived in showrooms in September,
followed in November by the C4 hatchback, pro-
duced in Argentina. Citroën’s range for the local
market was also extended during the year with
two models imported from Europe: the Grand C4
Picasso and the new C5 (sold in Argentina).
Sustained expansion of the dealership net-
works also strengthened the brands’ marketing
power. The number of Peugeot and Citroën
dealerships in Brazil, for example, increased
by 20% to 273 in 2008.
Local teams have also taken active steps to
improve product and service quality, thereby
reducing incidents by 30%, breakdowns by 25%
and warranty costs by 25% in just one year.
Investments in
manufacturing
and technical capacity
–
The Group brought its Brazilian facilities into
compliance with PSA Production System practices
a recent ADDITION TO CITROËN’S
LINE-UP IN LATIN AMERICA,
the C4 notchback has been produced
at the Buenos Aires plant since 2007.

to prepare for production start-up of the 207
Mercosur range. Changes to production lines
and the addition of new equipment helped
smooth parts supply and improve workstation
ergonomics. In Argentina, capacity extension at
the Buenos Aires plant involved setting up new lines
in the body-in-white and assembly units and reor-
ganising supply chain operations. PSA Peugeot
Citroën continued to enhance its technical
capacity in Latin America so as to be able to meet
local market expectations even more effectively.
In August 2008, the Brazilian engineering teams
were treated to the first facility outside France for
viewing full scale digital mock-ups.
At the Porto Real plant, the new Mercosur Materi-
als Laboratory is fitted with innovative equipment
for studying the chemical and mechanical charac­
teristics of different materials with the goal of
facilitating certification of materials and automo-
bile parts while meeting quality, cost and timetable
constraints.
A wide-ranging local
commitment
– of suppliers, engineers and journalists
As one of the region’s business partners,
PSA Peugeot Citroën works with local players on
a wide range of initiatives that promote such
important values as education, safety, inclusion
and environmental awareness.
/ 37
In 2008, Peugeot launched
the 207 in Latin America
in three- and five-door,
notchback and SW versions.
All are produced locally
at the Group’s plants in Porto
Real, Brazil and Buenos Aires,
Argentina.
Several road safety projects were deployed in
2008. In Brazil, the Group won a Sustainable
Attitude prize for its campaign on child passen-
ger safety and the related guidelines brochure,
more than 30,000 copies of which have been
distributed. PSA Peugeot Citroën has also par-
ticipated for several years through donations
and employee involvement in a Global Road
Safety Partnership (GRSP) programme to reduce
the number of road accidents in the city of
Resende in Rio de Janeiro state.
In Argentina, the Group has launched a prevention
campaign targeted to employees’ children and
Buenos Aires schools to foster the emergence of
a road safety culture. The campaign includes a
BRAZIL: THE GROUP
contest and educational brochures.
DEMONSTRATES ITS
INNOVATIVE CAPABILITIES
As part of PSA Peugeot Citroën’s partnership
TO A NEW AUDIENCE
with the Iochpe Foundation in Brazil, the Porto
–
At SAE Brasil 2008, South America’s
Real plant has provided space since March 2008
premiere engineering event,
for the Formare programme, which provides
PSA Peugeot Citroën showcased the
vocational training for young people from local
new Peugeot 207 Passion and a flex-fuel
low-income families.
engine, both of which were designed
in Brazil. This event gave the Group
the opportunity to reach an audience
and present the tangible results of its
efforts to strengthen local engineering
and development teams, as well as
its ability to deliver products that are
increasingly aligned with local needs.
38 / OUR BUSINESS > INTERNATIONAL EXPANSION

ChinA
IN 2008 The Group devoted RMB 4.5 million Dongfeng Citroën:
The China Tech Centre, an R&D to road safety awareness campaigns • China’s leading broadline brand for customer
and styling facility, opened in Shanghai. in China. satisfaction in the area of after-sales service,
according to a JD Power survey.
• Ranked 4th in China, all brands combined.

UNIT SALES PSA Peugeot Citroën began operating in China enabled the brand to double its sales in the
(in thousands) in the 1990s through a 50-50 joint venture with corresponding segment.
– Dongfeng Motors that allowed it to comply with In September, the Citroën C-Quatre and Peugeot
Chinese legislation. Dongfeng Peugeot Citroën 207 cc joined the line-up, followed at the end of
209

Automobile (DPCA) has two plants in Hubei the year by the locally produced Peugeot 207
province. notchback and Citroën Grand C4 Picasso impor­
179

ted from Europe. This last vehicle’s “visiospace”

concept and premium features, including a roomy
Noticeable slowdown interior, modular design, high-end safety systems
in market growth and other equipment, give it a unique profile in the
Chinese market.
2007 2008 –
In 2008, the Chinese automobile market grew at To support these launches, both brands made
a much slower pace, expanding by 5.1% over the considerable efforts in 2008 to expand their net-

6
large cities
in China
welcomed the Group’s travelling road
safety exhibition, giving 60,000 families
an opportunity to raise their awareness
about this major issue.
full year compared with 24.5% in 2007. Demand
contracted in the second half of 2008, by 2.6%. A
number of factors contributed to this situation,
including the Sichuan earthquake, driving restric-
tions in Beijing during the Olympic Games, the fact
that certain local markets have reached maturity
and the global financial crisis’ impact on the Chi-
nese economy. The downturn in the second half
particularly affected the mid-range segment that
is central to DPCA’s line-up. As a result, the joint
venture’s registrations declined 14.1% from the
year before to 178,100 units.
Expansion of the line-up
and dealership network
works to new cities. By year-end, the Dongfeng
Citroën and Dongfeng Peugeot networks had
nearly 800 outlets between them.
Manufacturing
and technical resources
to drive success
–
The Wuhan plant is now equipped to produce
upper-mid-range models, allowing it to serve local
market needs even more effectively. The Xiangfan
mechanical components plant has also been
given new resources to manufacture the family of
EW new petrol engines.

– In addition, new recycling and wastewater treat-

The year also saw the introduction of the ment equipment has been installed in Xiangfan
Peugeot 307 hatchback and the very success- to reduce the environmental impact of the plant’s
ful launch of the new Citroën C-Élysée, which manufacturing operations.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 39

IN CHINA, DPCA’s new

manufacturing unit next to
the existing Wuhan plant will
start producing the new C5
in late 2009. Once ramped
up, it will boast a production
capacity of 150,000 vehicles
a year.

In 2008, the Group opened an R&D and styling
facility in Shanghai called the China Tech Centre
(CTC) with the goal of developing Peugeot and
Citroën models locally to meet Chinese custom-
ers’ expectations even more fully.
As of November 2008, some 200 technicians,
purchasing officers, engineers and designers
were working at the CTC, covering all areas from
vehicle architecture to engine components and
from design to local sourcing. CTC signed a co­­
operation agreement in 2008 with the automobile
department of the prestigious Tongji University
under which the Centre will provide opportunities
for interns and recent graduates.
- The Group organised a road safety advertising
contest in cooperation with the Ministry of Health’s
Centre for Disease Control.
- Lastly, a road safety exhibit was set up at the
Beijing Science and Technology Museum.
“30 SECONDS FOR THE
ENVIRONMENT”
–
In 2008, in cooperation with the
Chinese National Radio network’s
business station, PSA Peugeot
Citroën carried out a very popular
campaign to inform listeners in a
humorous way of environmentally-
friendly driving behaviours that can
reduce CO2 emissions.

Numerous awareness
campaigns
–
In 2008, the Group launched a host of initiatives
with local partners concerning such topics as road
safety, the environment and assistance to victims
of natural disasters. Following the Sichuan earth-
quake in May 2008, PSA Peugeot Citroën donated
more than RMB 3 million to help local residents.
Building on its longstanding commitment to

6
improving road safety in China, the Group also
launched three major campaigns to raise aware-
ness among the general public:
- A travelling road safety exhibition toured the models
country for seven months to teach nursery and made locally or imported were launched
elementary school students about road safety in in China in 2008, expanding the Peugeot
a fun-filled way. and Citroën line-ups.
40 / OUR BUSINESS > INTERNATIONAL EXPANSION

CENTRAL AND EASTERN

EUROPE – RUSSIA
IN 2008 Production of the Citroën
Cornerstone laid for the new C3 Picasso began at
plant in Kaluga, Russia. the Trnava plant in Slovakia.

Unit sales Two major growth markets for the automobile
(in thousands) industry are Central and Eastern Europe and
– Russia, where there are still relatively few cars
per capita and where purchasing power has
263
In the still buoyant Russian market, which
expanded 13.6% over the year (with 32.9% growth
in the first half, followed by a 1.5% decline in the
second), registrations of PSA Peugeot Citroën

risen steadily in recent years. vehicles increased by 67% to 60,300 units.

255

In the final quarter of 2008, however, a number of Manufacturing operations

2007 2008
The ISO 14001-certified
plant in Trnava,
Slovakia is now
producing the new
Citroën C3 Picasso.
events severely dampened growth in automobile
sales in most markets in the region. The financial
crisis had a severe impact on Hungary, Poland
and the Czech Republic in particular, which all
saw a sharp drop in their exports to Western
Europe. At the same time, the economic crisis led
to higher unemployment across the region.
As a result, in a market that declined 1% over
the year (reflecting 16% growth in the first
half, followed by a 14.9% drop in the second),
PSA  Peugeot Citroën registrations retreated
3.3% to 191,000 units.
–
Owned jointly with Toyota, the TPCA plant in Kolín,
Czech Republic manufactured 320,000 Peugeot
107s, Citroën C1s and Toyota Aygos during the
year. The recently restyled compacts are highly
fuel efficient, emitting just 106 grams of CO2 per
km in their petrol versions, and have proven highly
popular in a number of European markets.
Also in 2008, the plant in Trnava, Slovakia suc-
cessfully started up production of the new Citroën
C3 Picasso, whose innovative concept and four
engine options position it to lead the compact MPV
market. The C3 Picasso is being assembled
alongside the Peugeot 207, which has been built
at the Trnava facility since 2006.

PSA Peugeot Citroën’s confidence in the Russian

market’s long-term growth potential was demon-
strated in June, when the cornerstone was laid for
its new joint-venture plant in Kaluga. Owned 70%
by the Group and 30% by Mitsubishi Motors
Corporation (MMC), the facility will manufacture
mid-range C-segment models for Peugeot and
Citroën and mid-sized SUVs for all three brands.
The models will be marketed in Russia.
OUR BUSINESS > OTHER BUSINESSES
Gefco
In 2008 Subsidiaries opened in Latvia,
€3.5 billion in revenue, Ukraine and Chile. Increase in inbound
down 0.5% on 2007. and outbound China tonnages.
Gefco, a wholly-owned subsidiary, is pursuing
a strategy based on industrial supply chain inte-
gration and international development. It offers
high value-added solutions across the supply
chain, including overland, sea and air transport,
industrial logistics, container management and
vehicle preparation and distribution.
Resilience in a weaker
economy
– hiring objectives for coming years. It is also plan-
In 2008, revenue from services performed for
other Group companies was stable at €2,171 mil-
lion, while revenue from services sold to external
customers decreased by 2.7% to €1,365 million.
At €127 million, or 3.6% of revenue, recurring
operating income was adversely affected by the
steady rise in oil prices during the first seven
months of the year and by the collapse in auto­
mobile demand, Gefco’s largest market. In response,
the company led a variety of effective action plans
throughout the year, with improved expense dis-
cipline helping to offset part of the cost inflation.
In line with its strategy, Gefco continued to expand
in the global marketplace and diversify its business
base in 2008. Today the company delivers its
expertise to customers in such industries as auto-
motive equipment, scooters and motorbikes, per-
sonal care products and consumer electronics.
/ 41
750,000 vehicles transported
by rail in Europe during the year.
Hiring and integrating
the disabled
–
In June 2008, Gefco signed an agreement with
employee representatives concerning jobs for the
disabled, in line with PSA Peugeot Citroën’s Global
Framework Agreement on Social Responsibility.
The company formalised its disability policies
with, in particular, the creation of a Disabilities Ini-
tiatives unit. As part of these policies, the company
also conducts sensitivity programmes and sets
ning to deploy initiatives to support hiring of the
disabled, such as redesigning workstations,
adjusting working hours and providing access to
appropriate training.
Sustained building
optimisation
–
Between 2005 and 2008, Gefco chaired a com-
mission to create a dedicated Sustainable Devel-
opment Charter for logistics buildings, under the
auspices of the Afilog association. It was therefore
pleased to learn that logistical platforms will now
be covered by France’s NF Commercial Buildings
– High Environmental Quality (HQE) Procedure,
which is designed to improve a building’s integra-
tion into the surrounding environment, attenuate
noise, structure the use of multi-modal systems
and limit energy and water use. Gefco plans to
seek certification for its logistical platforms now
being built in France. A specific certification for
existing buildings is currently being developed.
42 / OUR BUSINESS > OTHER BUSINESSES
BANQUE PSA Finance
In 2008 New retail financing provided
A good performance for the year, for 848,077 new and used vehicles,
with revenue gaining 4.5% to €2.1 billion. down a slight 0.3% from 2007.
27.3%
In 23 countries around the world, Banque PSA
Finance supports the sale of Peugeot and Cit-
roën vehicles by financing new vehicle and
replacement parts inventory for dealers and
The percentage offering a comprehensive array of financing
of new Peugeot and Citroën and related services to carbuyers.
vehicles financed
by Banque PSA Finance,
up from 26.1% in 2007. Business review
– –
The 2008 financial crisis caused sources of
financing to dry up and refinancing spreads to
widen. This had a direct impact of a large num-
ber of automobile markets, which saw a steep
decline in demand.
Nevertheless, Banque PSA Finance delivered a
satisfactory marketing performance and limited
the margin impact of higher refinancing costs and
escalating credit risks. The penetration rate among
buyers of new Peugeots and Citroëns rose to an
all-time high of 27.3%, helping to cushion the
effects of the crisis on lending volumes.
As of 31 December 2008, outstanding retail loans
stood at €17,913 million, up 0.3%, with the loan
book outside Western Europe rising 22.1% to
€1,090 million.
Outstanding wholesale loans declined 22% over
the year to €4,370 million, reflecting the major
efforts undertaken by the Group to reduce inven-
tory. In all, the total Banque PSA Finance loan book
contracted 5% during the year, to €22,283 million
at 31 December.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
The Bank is continuing to focus its strategy on
building sales of services to Peugeot and
­Citroën customers. The number of auto insur-
ance policies sold during the year rose 14.3%,
for example, led by higher sales of financing
and service packages.
Varying performance
by market
Loan volumes rose sharply in 2008 in certain
European markets, such as Austria (up 11.4%),
Germany (up 6.5%) and Poland (up 17.5%). The
Bank also enjoyed strong growth in new lending
in Brazil (up 45.8%) and Argentina (up 35.8%),
reflecting robust local sales of Peugeot and Cit-
roën models and the deployment of an increased
number of joint programmes with the brands. On
the other hand, finance volumes contracted sub-
stantially in Spain, Italy and Mexico as the local
automobile markets went into a free fall.
Risk management
–
Against this backdrop of economic crisis, Banque
PSA Finance reinforced its collection systems,
particularly in the United Kingdom and Southern
Europe. At the same time, the risk selection policy
was regularly reviewed in order to respond on a
timely basis to the fast changing economic and
financial environment. The Bank ended the year
with stronger marketing positions, stable net bank-
ing revenue and a credit loss ratio of less than
0.5% of average net loans.
 / 43

Faurecia
In 2008 Deployment of the Challenge 2009 plan,
€12 billion in revenue, down 5.1%. calling for €600 million in cost savings.

The Faurecia subsidiary ranks among the world’s
top three automotive equipment manufacturers
in each of its core component families: seats,
vehicle interiors, front-ends and exhaust sys-
tems. It is committed to supporting carmakers
in their global expansion by offering superior
cost and quality performance.
Faurecia’s recurring operating income amounted
to €91.2 million in 2008, representing 0.8% of
sales. These results reflected the sudden 20.9%
drop in business in the fourth quarter as conditions
sharply deteriorated in many automobile markets
around the world. The restructuring programmes
undertaken during the year to align staffing with
demand represented a total cost of €162 million
and concerned 5,150 people, mainly in France.
Sales in Europe declined by 6.5% on a significant
reduction in production volumes across the cus-
tomer base. Sales in North America gained 3.9%,
on the other hand, with unit sales remaining firm
thanks to the company’s lack of exposure to the
large vehicle segment, which was the hardest hit,
and its position as a supplier on models that con-
tinued to sell fairly well, such as the Chevrolet
Malibu and the BMW X6. Sales in Asia rose 3.4%
during the year, led by 6.9% growth in China.
The company also continued to diversify its cus-
tomer portfolio in 2008, increasing the percentage
of business from BMW and Volkswagen. The latter
is now the company’s largest customer, account-
ing for 23.9% of revenue, ahead of PSA Peugeot
Citroën, at 22.9%.
In response to the difficulties in the automotive
markets, Faurecia has deployed the Challenge
2009 plan. As part of this process, in April 2009,
the company announced the completion of the
first phase in securing its financing, which involved
a total of €1,633 million provided by three types
of financing facilities: a €1,170 million bank loan,
a €250 million loan from Peugeot S.A. and an
additional €213 million line of credit from a French
banking syndicate. In addition, at the Annual
Meeting on 24 April, shareholders approved the
second phase, comprising a €450 million rights
issue underwritten by Peugeot S.A.

“Light Attitude”: a Slimmed-Down Concept Car for a Smaller Environmental Footprint

–
Unveiled at the 2008 Los Angeles Motor
Show, the “Light Attitude” concept car
demonstrates Faurecia’s latest advances
in eco-design. It effectively showcases the
company’s ability to reduce the weight of
tomorrow’s cars and trucks – a critical driver
of improved fuel efficiency and lower carbon
emissions – with ten breakthrough
technologies, whose combined
implementation removes as much as
30 kg from a vehicle’s total weight.
The dashboard’s hard-surface plastics,
for example, have been replaced by fabrics,
while seat structures use composites
to replace conventional aluminium and
steel. Other innovations have been applied
to the doors and the exhaust system.
Light Attitude offers a glimpse of the next
generation of Faurecia’s lightweight portfolio
of products, which will enable weight
reduction of more than 20 kg for several
models in development.
44 /

Seat design
on the Citroën
C-Cactus
concept car

OUR
COMMITMENT
 / 45

Capitalising on its expertise, PSA Peugeot Citroën is committed

to maintaining its European leadership in environmentally friendly
vehicles, even as it continues to optimise its internal combustion engines
and explore alternative propulsion technologies. It is also highly
focused on delivering superior safety performance and respecting
its commitments to employees.

Greenhouse effect
Nearly 1.2 million vehicles
emitting less than 140 grams
of CO2 per km sold in 2008.

Road safety Social responsibility

13 models awarded Euro NCAP Every subsidiary has pledged
five-star rating. to support the Global Framework
Agreement on Social Responsibility.

The Citroën C-Cactus concept car

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

46 / OUR COMMITMENT > Translating Needs Into Products

Translating Needs
Into Products 1
PRODUCT DEFINITION
Define new automotive
products and services
aligned with:
Meeting the sustainable development challenge The mobility needs of
Throughout their lifecycle, automobiles pose a number of environmental consumers around the world
Environmental, safety
and social challenges, in the areas of greenhouse gas emissions, for example, and other legislation, as well
or road safety. To address them successfully, PSA Peugeot Citroën has as society’s expectations
in these areas
seamlessly integrated its products into a sustainable development process
deployed in close cooperation with stakeholders across the automobile chain.

In addition to the dedicated programmes undertaken at every stage

in a vehicle’s lifecycle, this process is also being supported by working
methods based on the principles of corporate governance, social
responsibility and financial transparency.

SOCIAL RESPONSIBILITY
Demonstrate the highest standards in our employee
relations policies:
Safety and working conditions
Respect for fundamental human rights
Human resources planning and development
Compensation

GOVERNANCE
Comply with best corporate governance practices
Encourage every employee to embrace the principles
of sustainable development
Demand that partners comply with our environmental
and social standards

ECONOMICS
Design, build and sell products at a fair price for
customers and an acceptable cost for the company
and its partners
Improve organisational efficiency
5
USE
Transparently inform stakeholders about our financial Help to attenuate the impact
and social responsibility performance of using an automobile,
by promoting safer, more
environmentally responsible
driving practices

CIVIL SOCIETY CUSTOMERS

Motorists and other road users Retail and corporate customers
Opinion leaders, such as non- Consumer associations
governmental organisations, the media,
independent experts, and financial and
socially responsible investment analysts

PARTNERS INSTITUTIONS HOST COMMUNITIES

Employees National governments Local authorities

Suppliers and service providers and European Union authorities Neighbours
Dealership networks International organisations Local associations
Shareholders and other investors Unions Local schools and universities
Research organisations Public interest groups
Other carmakers
and joint-venture partners

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 47

CO2

2
DESIGN
Design vehicles at an acceptable cost
and attenuate their impact:
On the environment, by reducing their CO2
and other local emissions, using resources
responsibly and improving their recyclability
On society, by improving their safety
performance, reducing noise pollution
and easing traffic congestion

DE
AL
ER
SH
IP

3
PRODUCTION
Reduce the environmental impact
of automobile manufacturing
Eliminate every form of waste
Ensure workplace safety
Participate in the economic and social
life of local communities

4
MARKETING
Integrate environmental concerns into
supply chain and dealership network
management
Responsibly inform customers,
in advertising and labelling, and ensure
a satisfying ownership experience
with effective sales and customer
END OF LIFE
service processes
Facilitate the collection and processing
of end-of-life vehicles and components by
specialised providers of decontamination,
recycling and resource recovery services
48 / OUR COMMITMENT > vehicles and the environment

LOW-EMISSION
VEHICLES
in 2008
More than one million vehicles emitting
less than 140 grams of CO2 per km were
sold worldwide, for the third year in a row.
€2.1 billion was allocated to research
and development, representing 5.1%
of Automobile Division revenue and
an increase of €300 million over 2007.
Europe’s lowest new-car average CO2
emissions, at 140 grams per km in 2008,
according to the ranking prepared
by France’s Agency for the Environment
and Energy Management (ADEME).

Sustainable PSA Peugeot Citroën is stepping up its R&D Immediate gains

development commitment to develop cars that are both envi-
objective no.1 ronmentally friendly and easily affordable. thanks to standard-setting
A critical objective is to reduce carbon emis- powerplants
Continue to be the sions, with programmes being pursued in sev-
–
eral areas, including vehicle and component
leading producer of weight, powerplants and aerodynamics. All of These results have been driven by extensive
low-emission vehicles them are focused on developing efficient, reli- power train expertise, which is being constantly
–
able solutions, aligned with the needs of each enhanced with the deployment of advanced tech-
2 million vehicles emitting less than
market, that together effectively address the nological solutions in engine architecture, fuel
120 grams of CO2 per km sold between 2007
challenge of global warming. intake systems and injection systems.
and 2010.

For the past decade, PSA Peugeot Citroën has

CO2 emissions from Peugeot and Citroën
vehicles have been reduced by
Reducing CO2 emissions,
a competitive advantage
– tion with BMW, which reduce fuel consumption
The Group’s leadership in low emission vehicles
is based on a widely marketed, constantly
enhanced product range. Fifteen Peugeot and
Citroën model families with versions that emit less
than 130 grams of CO2 per km are currently being
marketed in Europe: the Peugeot 107, 1007, 206,
207, 308, 3008, 407 and Bipper and the Citroën
been assertively downsizing its engines, enabling
them to deliver the same performance in smaller,
more fuel-efficient forms. In addition to the high-
technology petrol engines developed in associa-
and emissions by 10 to 15%, the Group is preparing
a new family of three-cylinder, 1-litre, 70 to 100 hp
petrol engines that will be produced beginning
2011. The new powerplant will make it possible to
offer cars that emit less than 100 grams of CO2
per km without additional technology. PSA Peugeot
Citroën also remains the world’s specialist in

15,000
C1, C2, C3, C3 Picasso, C4, Xsara Picasso and common-rail, direct-injection diesel technology,
Nemo. Some 921,000 vehicles emitting less than with its HDi family delivering remarkable drivability
130 grams of CO2 per km were sold in 2008, an while reducing CO2 emissions by 20% compared
increase of 7.4% over the year. with the previous generation diesels and by 30%
compared with petrol engines. These benefits
tonnes a year thanks have made the HDi one of the best selling engines
to one million fuel-efficient Michelin in Europe, with more than 12.4 million units pro-
Energy Saver tires. duced between 1998 and 2008.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 49

Further gains in fuel efficiency and carbon

emissions are being driven by improvements
in a variety of vehicle sub-assemblies.
Equipping certain models with electronic manual
gearboxes can improve fuel efficiency by up
to 5%. In cooperation with suppliers, extensive
work is being conducted on tyres to determine
the most effective balance between dynamic
performance, which contributes to active safety,
and low rolling resistance, which saves fuel.
To reduce drag to a minimum, aerodynamics
is a key parameter in vehicle design.

Reducing weight Upgrading production

to cut emissions models of the
– Citroën C5 Tourer
Weight has a direct influence on a car’s fuel effi- with HDi 110 hp engine
ciency, and therefore on its carbon emissions. and particulate filter
That is why PSA Peugeot Citroën has made weight Carbon emissions reduction in 2008
reduction a major factor in shrinking the environ-
mental footprint of its models, while continuing to 150 140 grams per km
improve safety and other performance features.
This commitment to making cars lighter is a key
criterion in selecting vehicle design and architec-
ture solutions, with a preference for those that
deliver the specified features using less base
material. One example is the increasing use of
very stiff high-tensile steel. Teams also pay careful
attention in selecting a vehicle’s base materials,
particularly the metals that on average account for
around 70% of its total weight. Whenever techni-
cally feasible and cost effective, weight is reduced –3.5 grams
by choosing lower density materials, such as the
of CO2 per km
aluminium or plastics used in the place of steel. –4.1 grams BY UPGRADING THE POWER
Another source of improvement lies in the use of
innovative assembly techniques, such as hot of CO2 per km STEERING SYSTEM
stamping and laser welding, which help to reduce BY REDUCING DRAG • Replacing the conventional engine
car body weight while improving impact resistance. • Fitting a new generation of more belt-driven system by electrohydraulic
efficient aromatic oil-free tyres power steering (EHPS)
• Improving aerodynamics
with smaller diameter tyres, –2.4 grams
a 10 mm reduction in body
width and lower clearance of CO2 per km
• Improving the tyres’ rolling BY OPTIMISING
resistance coefficient (RRC) THE POWER TRAIN
• Extensively reworking engine
drive systems and recalibrating
the engine management system
following the reduction in drag
• Using a new low-viscosity motor oil
50 / OUR COMMITMENT > vehicles and the environment
BREAKTHROUGH
TECHNOLOGIES
in 2008
Presentation of HYbrid4 technology,
to be introduced on premium Peugeot
and Citroën models in 2011.
PSA Peugeot Citroën is
working on a new range
of electric vehicles, whose
first model will be brought
to market in late 2010.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
Further progress on developing
zero-emission vehicles, led
by the cooperative EV venture
with Mitsubishi Motors Corp.
In addition to optimising internal combustion
engines, mechanical sub-assemblies and
vehicle architecture, PSA Peugeot Citroën is
actively working on technological solutions
designed to drive powerful breakthroughs in
reducing an automobile’s environmental
impact. The deployment of the Stop & Start
system in 2010, of hybrid solutions in 2011 and
a range of zero-emission vehicles will enable
the Group to consolidate its European lead­
ership in the low-emission vehicle segment
and to extend its expertise to other markets.
Stop & Start: micro-hybrid
technology for everyone
– HDi diesel model and nearly 50% compared with
First introduced on the Citroën C2 and C3 in 2004,
PSA Peugeot Citroën’s Stop & Start system shuts
down the engine when the car is standing still,
thereby improving fuel economy and reducing
carbon emissions in both diesel and petrol engines
by up to 15% in city driving. Highly cost-effective,
it is perfectly attuned to the concerns of many
Peugeot and Citroën customers. In response, the
technology’s second generation – featuring a
more powerful, faster-starting starter-generator
that allows regenerative braking – will be extended
across the model line-up beginning in 2010.
HYbrid4: full-hybrid diesel
technology
–
Unveiled at the 2008 Paris Motor Show, the Peugeot
Prologue and Citroën Hypnos concept cars illus-
trate the current state of the Group’s full-hybrid
diesel technology. Known as HYbrid4, it combines
the high fuel efficiency of the HDi diesel in highway
driving with all the benefits of electric propulsion
on city and suburban roads. It also adds all-wheel
drive capability thanks to an electric motor
mounted on the rear axle assembly.
With its integrated Stop & Start system and par-
ticulate filter, HYbrid4 technology delivers break-
through fuel efficiency and CO2 performance, with
gains of nearly 35% compared with the equivalent
a similarly rated petrol engine. Compatible with a
wide array of body styles and power trains, it will
be introduced on “distinctive” Peugeot and Citroën
models, notably the future Citroën DS5 HYbrid4
and Peugeot 3008 HYbrid4, scheduled for launch
in 2011.
Electric vehicles
and plug-in hybrids
–
A pioneer in electric vehicles with 10,000 EVs sold
between 1995 and 2005, PSA Peugeot Citroën
has given new impetus to its EV development
programmes, in a commitment to serving a market
that will initially expand through fleets and car
sharing schemes.
In March 2009, a new cooperation agreement was
signed with Mitsubishi Motors Corp. (MMC) con-
cerning the joint development of an EV for the
European market based on MMC’s i MiEV car, with
launch scheduled for 2010. The agreement is also
designed to drive faster growth in the EV market
as a whole. At the same time, to bring EVs to a
wider customer base, the Group is working on a
multipurpose plug-in hybrid capable of running in
all-electric mode for around 50 kilometres, which
corresponds to most drivers’ daily needs. Offering
all the benefits of an EV, it can also shift into hybrid
mode for longer distances. To support the wider
use of EVs and plug-in hybrids, a partnership was
formed with French power utility EDF in 2008,
covering such areas as the definition of business
models capable of driving the commercial de­vel­
opment of electric vehicles, energy storage tech-
nologies, and the standardisation of recharging
systems and protocols to enable vehicles and the
network to communicate during recharging.
Fuel cells The Peugeot Prologue
concept car, unveiled
– at the 2008 Paris Motor Show,
integrates the Group’s HYbrid4
PSA Peugeot Citroën is continuing its research full-hybrid diesel technology,
programmes aimed at making it technically fea- which delivers breakthrough
sible and cost effective to develop automotive improvements in fuel economy
and CO2 emissions. The
applications for fuel cell technology, which would HYbrid4-equipped Peugeot
eliminate CO2, hydrocarbon (HC), nitrogen oxide 3008 will be introduced in 2011.
(NOx) and other tailpipe emissions. An in-house
team of specialists is working on different cells and
vehicle prototypes with the support of expert net-
works, as part of research partnerships like the
ones created with France’s National Scientific
Research Centre (CNRS) and Atomic Energy
Commission (CEA). The challenges involved –
lowering fuel cell costs, integrating fuel cells into
vehicles, and storing and distributing hydrogen
– are often beyond a carmaker’s control. As a
result, the Group plans to gradually introduce the
technology beginning around 2020.

TAKING A LOCAL APPROACH TO ALTERNATIVE FUELS

–
Another way to reduce a vehicle’s carbon
footprint is to develop the use of alternative
fuels, whose effectiveness in improving fuel
economy and fighting climate change
depends to a great extent on each market’s
specific characteristics. For example, the
Group is already selling vehicles running
on compressed natural gas (CNG) in markets
where gas is a viable alternative to petrol
and diesel. In 2008, it completed development
of a global multipurpose 1.6-litre CNG engine
and introduced it in Iran and China. Fossil
hydrocarbons can also be partially replaced
by biofuels. The Group’s diesels, for example,
can run on up to a 30% biodiesel blend,
providing the fuel grade is high enough, while
its gasoline engines can run on up to 10%
ethanol blends. PSA Peugeot Citroën also
enjoys extensive expertise in flex-fuel
technology, which is offered on nearly 65%
of its petrol-powered versions sold in Brazil.
Aware of the potential conflict between using
crops for fuel instead of food, the Group
is carefully tracking the research being
conducted on second-generation biofuels,
which use all of the plant material in today’s
fuel crops as well as organic waste, such
as biomass, or algae. It is committed
to enabling its engines to run on these
fuels as soon as they start being produced
industrially, probably around 2020-2030.
52 / OUR COMMITMENT > vehicles and the environment
SUSTAINABLE MATERIALS
FOR ECO-DESIGN
in 2008
Green Materials plan implemented,
with each new vehicle project assigned
a contractual target for percentage use.
Sustainable
development
objective No.2
Sharply increase the
proportion of green
materials in Peugeot
and Citroën vehicles
– environmental impact of end-of-life vehicles
Raise the share of green materials to
20% of polymers contained in a vehicle
in 2011.
BIOMATERIALS RESEARCH
– prevailing legislation. Recycling and resource
The collaborative MATORIA project
is aimed at speeding the development
of engineered bioplastics by bringing
together scientists and manufacturers
from across the plastics chain,
including chemical companies, plastic
product manufacturers, equipment
companies and carmakers. In this
way, it hopes to drive the emergence
of products that can replace a
significant proportion of petrochemical-
based plastics by 2015.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
Leadership of the collaborative MATORIA
project designed to develop injection
plastics made from renewable feedstocks.
PSA Peugeot Citroën teams are proficient in the
eco-design process, which helps to shrink a
vehicle’s environmental footprint to a minimum
at every stage in its lifecycle. In addition to
improving fuel efficiency and reducing carbon
emissions, the process is focused on op­
timising the use of natural resources by
carefully selecting vehicle materials. The Group
is also committed to reducing the potential
(ELVs) by making them easier to recycle.
Designing the environment
into every car
– families of materials: recycled materials, natural
Design teams address the challenge of materials
and their recyclability in the project upstream,
with an initial focus on ensuring compliance with
recovery requirements are integrated into each
new vehicle’s specifications, including the techni-
cal specifications issued to equipment suppliers.
This is also the case for base materials, with each
new project assigned clearly defined targets as
for weight, cost and other key criteria. In coordina-
tion with suppliers, the project team leader regu-
larly tracks progress in meeting these targets with
appropriate metrics.
An assertive commitment
to using green materials
–
To optimise the use of resources, PSA Peugeot
Citroën is focusing much of its research on poly-
mers, since most of the other materials, such as
metals and fluids, are already recyclable and
extensively recycled. Polymers account for almost
20% of a vehicle’s total weight.
Since 2008, an ambitious plan has been deployed
to increase the proportion of green materials, by
weight, in a vehicle’s total polymers (excluding
tyres) to 20% by 2011, from an average 6% in
2007. For the Group, green materials include three
materials (leather, wood, vegetable fibres, etc.)
and biomaterials (made from renewable instead
of petrochemical feedstocks). Their use offers a
number of benefits, such as reducing the use of
fossil plastics and fostering the development of
plastics recycling processes by increasing
demand. What is more, materials containing
natural fibres help to make vehicles lighter, which
is why they are also selected on the basis of
weight. Lastly, the three families of green materi-
als complement each other, because they gener-
ally cannot be used together in the same
application. This means that a wide variety of
parts could be made with at least one of them.

Gradual deployment
on vehicle projects
– with standardised materials codes, so that disas-
In addition to ensuring compliance with technical
and budget specifications, the wider application
of green materials requires the development of
robust supply chains and research on new materi-
als. To meet the 20% target by 2011, the Group is
actively selecting and certifying materials that offer
the best cost/technical trade-off, to create a port-
folio of solutions for future vehicle projects. It is also
involved in a large number of scientific partner-
ships to spur faster development of the biomateri-
als industry and expand the use of these materials
in automobiles. The commitment to stepping up
their use has also led the Group to replace certain
parts already fitted on production models with oth-
ers containing green materials. One example is the
Peugeot 207 rear view mirror support stalk, which
is now made of hemp-fibre reinforced polypro­
pylene instead of fibreglass.
Facilitating eco-friendly
disposal of end-of-life
vehicles
– –
In designing for recycling, PSA Peugeot Citroën
tries to make it easier to disassemble and decon-
taminate end-of-life vehicles (ELV). It works closely
with disassembly organisations, to keep them
/ 53
{{
WE SHOULD INSTINCTIVELY CONSIDER USING GREEN
MATERIALS IN OUR PRODUCTS.
We define objectives for each vehicle and work closely with suppliers. Targets for green
material content are set for each sub-system and included in the contracts for each
vehicle project. Working with suppliers, our technical managers and design teams track
progress on meeting these targets throughout the life of the project. Since 2008, we’ve
asked suppliers to propose equivalent green material content for every new part.
An analysis of the producer base has identified current suppliers of natural fibres and
recycled materials. Our goal is to prepare a balanced portfolio of suppliers capable
of reliably meeting the Group’s green materials needs.”
LOUIS DAVID / PSA PEUGEOT CITROËN MASTER EXPERT, VEHICLE MATERIALS
informed of procedures that facilitate the elimina-
tion of fluids and the disabling of airbag pyro-
technics. It also makes sure every part is marked
semblers know exactly what is in each one. To
further assist recovery and recycling facilities,
PSA Peugeot Citroën encourages the use of eas-
ily recyclable materials, such as polyolefins, and
tries to reduce the variety of materials to facilitate
sorting after shredding. Other programmes are
supporting the development of the industrial
base needed to meet the Group’s recycled mate-
rials needs. Thanks to this extensive commitment
to recyclability, 95% of the average weight of new
Peugeot and Citroën vehicles is reuseable and
recoverable, as attested by certification from
French testing laboratory UTAC. Of this total,
85% is actually reuseable or recyclable and 10%
reflects the use of recovered resources as fuel in
waste-to-energy facilities.
GREEN MATERIALS IN THE CITROËN C3 PICASSO
Green materials make up around 11% of the new Citroën C3 Picasso’s 170 kg
of polymers (excluding tyres). Examples include natural fibres (photo), used
to make the rear parcel shelves, boot carpeting and door insets, and recycled
automotive plastics, used as raw material for mudguards.
54 / OUR COMMITMENT > manufacturing and the environment
PRODUCTION SITES
AND THE ENVIRONMENT
in 2008 ORGE, an interactive reporting and
Energy and water consumption and management application, was made
waste production all declined as a result available to environmental compliance
of measures taken across the Group officers worldwide.
and the sudden collapse in demand
in the second half.
Sustainable In response to the environmental challenges of
development automobile manufacturing, the Group has for
objective no.3 many years pursued a strategy of continuous
improvement. Employees are deeply involved
Reduce the average in this strategy, which has been deployed
worldwide. Now, the Group is focusing on
energy used per issues raised by operations in its technical and
vehicle produced administrative centres, replacement parts facil-
in our manufacturing ities, dealership networks and other units.
facilities
– ment system, based on ISO 14001, has been
2.1 MWh / car in 2010. Industrial environment
governance
– mental management and organisation. As part of
Series production, which is carried out at sites
located primarily in suburban industrial parks, has
an inherent environmental impact. In addition to
complying with national and local regulations and
safeguarding the neighbouring environment and
the quality of life in host communities, PSA ­Peugeot
Citroën has long been engaged in assertive envi-
ronmental stewardship at its production facilities
worldwide, again with a focus on continuous
improvement. This requires a disciplined organi-
500
sation, appropriate resources and a methodology
based on the ISO 14001 environmental standard.
A corporate-level Industrial Environment Section
leads and coordinates general activities in this
employees are involved area and manages the ORGE application, with
in environmental management throughout its own capital budget. In addition, at each plant,
the Group. an environmental compliance officer is backed
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
by a dedicated service and correspondents
appointed in each workshop and facility. The
technical department also has environmental
specialists who provide technical support for the
plants, particularly during new capital projects.
Through these programmes, nearly 500 people
are involved in the Group’s environmental man-
agement on a daily basis.
PSA Peugeot Citroën’s environmental manage-
introduced at all production facilities worldwide.
As of end-2007, all facilities were certified to the
internationally recognised standard for environ-
this process, all employees – including contractors,
interns, temporary employees and employees
hired under permanent or fixed-term contracts –
take part in environmental training or awareness
programmes tailored to their particular function in
the Group. Widespread deployment of Lean prin-
ciples, like good practice sharing, also helps
improve environmental performance.
Limiting emissions
–
Reducing emissions of all regulated contaminants
is a priority for PSA Peugeot Citroën. In automobile
manufacturing, paint shops are responsible for the
most significant amount of emissions, notably
volatile organic compounds (VOCs) from solvents.
 / 55

PRODUCTION FACILITIES
All PSA Peugeot Citroën sites
are certified to ISO 14001

China

Xiangfan*
Wuhan*

Brazil
Porto Real

Argentina Buenos Aires

Jeppener

Kaluga

Russia

Hordain
(Sevelnord*) Czech
Douvrin*
(Française de Mécanique) Valenciennes
Republic
Charleville-Mézières
Caen Trémery Kolín*
Rennes Metz
Paris Mulhouse Trnava
Sochaux
Hérimoncourt Slovakia
FRANCE Sept-Fons

Automobile
production centres Vigo
Mechanical components Spain Val di Sangro
plants and foundries (Sevelsud*)
Madrid
Production facility
under construction Mangualde Italy
* Joint ventures /cooperation
Portugal
(all these sites are certified
to ISO 14001).
Facilities
in the Paris area
Saint-Ouen
Aulnay-sous-Bois
Poissy
Asnières-sur-Seine
56 / OUR COMMITMENT > manufacturing and the environment

water is a critical
resource. To preserve
water quality, each
site is equipped with
a treatment unit
or connected to a
wastewater treatment
system.

VOLATILE ORGANIC To reduce these emissions, the Group is taking
COMPOUND (VOC) EMISSIONS assertive action in several areas. This includes:
Ratio (in kg/painted vehicle) • Optimising paint shops by introducing equip-
– ment with higher application efficiency to reduce
the use of conventional paints and related sol-
vents, by selecting low-solvent paints and by
recycling used solvents.
8.33
Reducing energy use
and GHG emissions
–
A number of processes in automobile manufac-
turing, such as casting and paint curing, are par-
ticularly energy intensive. The Group has

• Deploying clean technologies like water-based improved its energy profile over the past few
paints and powder primers. years by deploying an energy management plan,
• Installing air treatment equipment that incinerates upgrading its power plants to run on natural gas
4.88

VOCs. instead of fuel oil and implementing cogeneration

4.39

4.13

• Encouraging the sharing of experience and
good practices among Group plants.
Thanks to these measures, per-vehicle VOC
emissions from Group assembly plants have
been halved in less than 15 years. In addition,
1995 2006 2007 2008
each facility meets the limits set in the European
Union directive on reducing VOC emissions,
which took effect in October 2007.
As for other contaminants, the Group replaces
conventional high-sulphur fuel oil with low-sul-
phur fuels and natural gas whenever possible.
This move, combined with greater use of co-
systems. This plan reduced greenhouse gas
emissions (mainly CO2) per vehicle by around
40% between 1995 and 2008.
Carefully managing water
use and effluent
–
Water use is also carefully managed through wide-
spread metering, the promotion of water-saving
practices and the deployment of recycling sys-
tems. These measures have helped to reduce
water consumption per vehicle produced by more

4 kg
generated steam, has resulted in a spectacular than 60% since 1995. Production facilities are
decline in NO2 and SO2 emissions since 1995, either connected to the public wastewater treat-
with reductions of 43% and 99%, respectively, ment network or equipped with their own inte-
over the period. grated treatment plant. The facilities also
per vehicle: This is the Group’s systematically track releases using indicators
goal, to be achieved by implementing defined in their operating permits to ensure com-
the best, most cost-effective technologies. patibility with the surrounding environment.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report


Reducing and efficiently
recovering waste
– ­Belchamp and Vélizy centres.
In the same way that it has worked to make its
end-of-life vehicles more fully recyclable, the
Group has applied a policy to reduce, recycle
and recover its industrial waste for more than ten
years now. These measures have produced tan-
gible results. The amount of non-metal waste per
vehicle produced, for example, has declined by
around 25% since 1995, while the amount of
waste reclaimed and recovered has risen to
82%. At the same time, landfilled waste has
steadily declined. Nearly all scrap sheet metal,
turnings and other metal waste is recovered and
reused in steelmaking or in the Group’s found-
ries. Taking this category of waste into account,
Group plants reclaim and recycle a steady 94%
of their process waste.
Managing significant
impacts from other sites
– Motor Show. GreenPact is designed to help the French dealer network keep up with
In addition to its efforts at production units, the
Group has taken measures to reduce the most
significant environmental impacts from other sites,
including replacement parts facilities, R&D and
administrative centres, and the Peugeot and
Citroën dealership networks. In 2007, it extended
/ 57
{{
I MAKE SURE THAT THE RENNES SITE’S ENVIRONMENTAL
POLICY IS APPLIED PROPERLY on a day-to-day basis, at each stage
of the production process and when new manufacturing projects are launched.
I am assisted by a dedicated team of ten people. In addition to ensuring compliance
with legal requirements, we are responsible for leading action plans that will improve
the site’s environmental performance. An example is the “zero waste” policy in the
assembly shop. In leading such programmes and conducting awareness campaigns,
I quite naturally come into contact with all staff members, as well as contractors. Our
approach also involves maintaining close ties with local players such as the Regional
Authority for Industry, Research and the Environment (DRIRE) and the water board
and raising awareness among external stakeholders like the Chamber of Commerce
and local schools.”
CAROLE Gillet / ENVIRONMENTAL COMPLIANCE OFFICER, RENNES
its ISO 14001 certification programme to the
Vesoul replacement parts facility and the La
Garenne technical centre. Next up will be the
As part of its environmental programme, the
La Garenne site has received new equipment
that reduces the amount of water needed to cool
test benches. Thanks to its water recycling sys-
tem, the site has reduced its withdrawals from the
urban network by 90%. PSA Peugeot Citroën has
also taken steps to optimise paper use by printing
only when necessary and facilitating wastepaper
recycling. An action plan has been implemented
to develop and deploy an international scorecard
of good environmental and social practices in the
Peugeot and Citroën networks, notably to manage
waste, environmental disturbances and natural
resource use more effectively.
CITROËN FRANCE LAUNCHES GREENPACT
–
Citroën France introduced its GreenPact environmental approach at the 2008 Paris
changing legislation and continuously improve the way it handles environmental
impacts (waste management, storage of chemical products, traceability of end-
of-life parts, etc.). To do this, GreenPact leverages a full range of communication
resources—including a website, an environmental guide, a magazine, a newsletter
and information meetings—and facilitates contacts between the network and other
specialised players, such as organisations that collect and treat end-of-life vehicles,
parts or coolants. Just a few months after GreenPact was launched, 97% of Citroën’s
2,300 French dealers had signed on to the approach.
58 / OUR COMMITMENT > social responsibility
OUR SOCIAL
RESPONSIBILITY
in 2008
Nearly 201,700 employees
worldwide, including nearly
130,000 in the Automobile Division.
4,100
courses in the employee training
catalogue. Every year, employees have
the opportunity to discuss their training
needs during one or more reviews with
their manager.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
More than 93,000 employees
outside France.
Built on a strong commitment to social cohesion,
PSA Peugeot Citroën’s human resources policies
are designed to continuously enhance the or­
ga­nisation’s performance and competitiveness.
Responding to a difficult
business environment
– ment programmes with a strong commitment to
The financial and manufacturing crisis has led
to a major reduction in unit sales, prompting the
Group to implement a variety of measures to
align production volumes with demand. In
France, short-time work totalled nearly 4,400,000
hours in the Automobile Division, with the vari-
able work scheduling agreement helping to main-
tain compensation levels. Application of the
agreement, which was signed in 2005, makes it
possible to keep short-time employees at full
salary for up to 25 unworked days, thanks to the
partial compensation of overtime already
worked. Plants outside France also used un­
worked days, maintaining compensation levels
through variable work scheduling agreements,
which include time banks.
Internal mobility was also encouraged in order to
redeploy capabilities and the workforce, thereby
preserving jobs. As part of this process, 10% of
worldwide employees and 22% of managers
changed jobs in 2008. To support this dynamic, a
number of new initiatives, such as the Mobility
Charter, Transfer Opportunity Centres and Place-
ment Fairs and Offices, were also implemented
during the year.
Responsibly managing
jobs and capabilities
–
As in 2007, the Group chose to lead these align-
maintaining social cohesion. To avoid dismissals
or early-retirement schemes, the redeployment of
jobs and capabilities was based on voluntary par-
ticipation in initiatives designed to move forward
future separations for such reasons as full-time
retirement, change of profession, retraining leave,
transfers or outplacement.
In France, Spain, Germany, Portugal, Argentina,
China and other countries, these initiatives were
negotiated in advance with unions or developed from
human resources planning and development agree-
ments. Together, these plans and programmes result­
ed in the separation of 6,150 employees in 2008.
Another 6,120 separations are scheduled for 2009,
of which 3,550 will be covered by the voluntary
capabilities redeployment plan announced in
December 2008. In addition, 900 operators at the
Rennes plant will be transferred to other facilities.
The entire downsizing process is being carried out
in a socially responsible manner, with a full range
of employee support measures.
 / 59

{{
PSA PEUGEOT CITROËN’S SOCIAL RESPONSIBILITY
COMMITMENT IS A REAL ADVANTAGE IN DEVELOPING
OUR SKILLS. By making the responsible management of jobs an absolute priority,
by preparing for the future with the development of our diversity and capabilities,
and by making training and the demonstration of new managerial attitudes core drivers
in improving the Group’s performance, we will emerge from the current crisis stronger
and more competitive than ever. This is the way we will successfully meet the challenges
that await us, while maintaining the company’s social cohesion.”

DENIS Martin / EXECUTIVE VICE-PRESIDENT, HUMAN RESOURCES

Preparing the future
through training
– Committee closely examines topics related to
The current crisis and the related production slow-
downs provide an opportunity to pursue training
programmes, in particular to better prepare the
transformation in core competencies and the
development of the Lean Everywhere culture.
A major training initiative involving 70 hours per
person in the Automobile Division will be offered
to employees on short-time work, then extended
to the entire workforce. In early 2009, the Group
signed an agreement making it possible to train
employees on days of short-time work to develop
their skills and enable the company to emerge
from the crisis more competitive than before.
been created to support dialogue and discussion Sustainable
with employee representatives: development
– The Joint Union Management Strategy objective no.4
the company’s situation and to policies and Extend PSA Peugeot
strategies deployed.
– The Skills and Capabilities Observatory
Citroën’s social
provides an effective, forward-looking vision responsibility commitment
of the Group’s skills-sets. It has also identified worldwide
strategic automotive skills.
Nurturing human capital
–
Training courses and programmes enable employ-
ees to develop their technical or managerial skills
and expand their career opportunities. In 2008,
they could choose from among nearly 4,100 mod-

Preparing for tomorrow’s
jobs and capabilities
– in the technological innovations introduced with
The Group’s expertise and capabilities are man-
aged both quantitatively and qualitatively through
21 global, cross-operations job tracks, which pro-
vide a forward-looking vision of tomorrow’s skills-
sets. For each one, a list of positions has been
identified so as to improve the human resources
planning and development process. To proac­
tively respond to an evolving skills base, manage
these skills more effectively and improve employee
visibility of over-the-horizon technologies and
manufacturing processes, two organisations have
ules in the training catalogue. Major technical or
managerial projects are supported by employee
training designed to instil the necessary skills and
abilities. Line operators, for example, are trained
the launch of new vehicles or drivetrains.
As well, managers and supervisors in the manu-
facturing operations attend classes in the princi-
ples of the Group’s production system.
All of the divisions have implemented work meth-
ods based on the principles of Lean Management.
As part of this process, a Lean Management
school was created in 2008 to help divisions to
deploy their training programmes.
22%
of managers
changed positions in 2008. Employees can
view job vacancies in the Group and post
their résumés on the Human Resources
intranet. Other measures to facilitate internal
mobility include workshops on how to
write a résumé or prepare for a successful
job interview, and the organisation of
transfer forums where employees can
meet with representatives from corporate
departments and divisions.
60 / OUR COMMITMENT > social responsibility
THE “LITTLE DRIVERS”
DAYCARE CENTRE IN VÉLIZY
PSA Peugeot Citroën offers
company daycare centres
to enable employees
of the Group and nearby
companies to enhance
their work/life balance.
The only
acceptable target
is zero accidents.
While the lost-time incident frequency
rate improved to 3.43 in 2008, the result
is still not satisfactory.
Improving working
conditions, ensuring
employee safety
– assistance and support hotline is available for
A total commitment to workplace safety
Now deployed at every plant and facility worldwide,
the integrated Workplace Safety Management
System ensures that executives, managers,
employees and employee representatives all feel
responsible and accountable for improving safety
and preventing accidents. The Workplace Safety
Management System and the deployment of the
STOP risk-observation procedure have led to the
development of a prevention policy for assessing
risks, handling malfunctions, deploying an early-
warning procedure and launching improvement
actions. The lost-time incident frequency rate
stood at 3.43 in 2008.
TOTAL LOST-TIME INCIDENT FREQUENCY RATE
Manufacturing, office, R&D and sales units,
excluding Gefco and Faurecia
–
6.36
5.06
4.40
3.41
3.72 3.43
2003 2004 2005 2006 2007 2008
Action plans to prevent psychosocial risks
PSA Peugeot Citroën is committed to preventing
psychosocial risks and stress in the workplace.
Early detection and intervention units have been
set up at every facility and a toll-free psychological
employees in distress. In 2008, a study was con-
ducted to assess key stress factors and determine
how stressed employees actually feel. These
assessment and tracking systems have enabled
the deployment of appropriate action plans.
Extending compliance with labour and safety
practices to our partners
Compliance with the Group’s labour and safety
practices is being extended to outside contractors
and temporary employment agencies, with a Group-
wide procedure clearly defining the applicable
labour and safety standards and requirements.
Guidelines for selecting contractors, integrating
their teams, coordinating projects and ensuring
buyer accountability have been established and
compliance is being tracked by audits.
Building employee safe driving awareness
As a carmaker, PSA Peugeot Citroën pays spe-
cial attention to preventing road accidents. In
association with employee representatives, an
occupational road risk prevention manual has
been prepared, to offer employees guidelines
on how to avoid an accident and on how to use
their cars when travelling on business or com-
muting. It is supported by an action plan that is
being gradually deployed in all of the Group’s
facilities and offices.

Improving working conditions
and employability
PSA  Peugeot Citroën ensures that every
employee works in an environment meeting the
highest standards. Production line workstation
ergonomics are being improved using the
METEO method. This process, which is being led
by multi­disciplinary teams of occupational physi-
cians, engineers, safety technicians, ergono-
mists and managers, is helping to significantly
reduce the hardship of certain workstations. In
the Automobile Division, the priority is to reduce
the number of workstations rated as “heavy.”
Between 1999 and year-end 2008, their percent-
age declined from 35% to 11% of the total, while
the percentage of “light” workstations increased
from 26% to 49%. Light workstations foster the
employability of people of all ages by enabling
employees with a number of medical restrictions
to remain on the job. In addition, the Group
makes sure that ­workspaces comply with the
highest standards of quality. Some units offer
services to help employees improve their work/
life balance, such as flexible working hours and
employee assistance services, like corporate
concierge services, company daycare centres,
and company sponsored social, sports and
cultural activities. In April 2008, PSA Peugeot
Citroën signed the French government’s Working
Parents Rights Charter, thereby pledging to
create a favourable environment for working par-
ents, especially for pregnant women, to give
them a greater voice within the organisation and
to apply the principles of non-discrimination with
regard to their career development.
An active commitment to health
Employee health is a challenge for both business
and society as a whole. As part of its commitment
to keeping employees healthy, the Group imple-
mented a Health Care Plan that is monitored
every year. Job-related diseases are covered by
prevention programmes that, for example, are
improving workstation ergonomics to attenuate
musculoskeletal disorders (MSDs). In the same
way, the Group’s medical teams are involved in
preventing certain diseases and diagnosing non-
work related risk factors capable of negatively
impacting employee health. They also provide
regular screening for glaucoma, certain types of
cancer and hepatitis C.
/ 61
A SAFETY-DRIVEN
SHOPFLOOR
–
In 2008, the Trnava plant in Slovakia
improved its safety performance,
reducing its lost-time incident
frequency rate to 2.08 from 3.23
in 2007. The recordable incident
frequency rate also declined, to 15.1.
During the year, safety and ergonomic
concerns were integrated into plant
work standards. At all levels of
the organisation, safety committees
responsible for defining and monitoring
safety improvement plans meet
regularly with employee representatives.
The plant also organised a Safety
Week event, during which managers
conducted a series of comparative
assessments to identify areas
of improvement in their fellow
managers’ sector of responsibility.
Special contests have helped to
highlight best prevention practices
and performance.
62 / OUR COMMITMENT > social responsibility
PRESERVING EMPLOYEES’
PURCHASING POWER
–
In every host country, compensation
policies are designed to reward
performance and offer compensation
that is competitive with market
practices. The minimum wage offered
by the Group in each country is equal
to or higher than the local statutory
minimum wage.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
Aligning performance,
competitiveness
and personal growth
– incentive bonus through the discretionary profit-
A large number of new agreements
In 2008, 240 agreements covering major issues
concerning the Group and its employees were
signed, including 140 outside France. Contractual
commitments address employee expectations
about working terms and conditions and also drive
changes in corporate culture and mindsets by tak-
ing other social issues into account.
Employee participation and social dialogue
in the workplace
To facilitate team management and dialogue, all
of the Group’s production plants have been
organised into Basic Production Units, whose
operating procedures are based on employee
participation. In line with this model, Basic Design
Units have also been set up in all research and
development facilities and departments. Similarly,
participatory approaches encourage employee
initiatives to promote continuous improvement.
Competitive, performance-based
compensation
In every host country, compensation policies are
designed to maintain employee purchasing power,
while rewarding performance, offering compensa-
tion that is competitive with market practices and
giving employees a stake in the value they help to
create. In 2008, more than 50 agreements were
signed with employee representatives worldwide.
SOCIAL DIALOGUE
is organised using
a “social agenda”
to prepare working
sessions with employee
representatives.
In addition to across-the-board raises, merit raises
are awarded every year to individual employees
in every job category. The processes for setting
compensation levels are closely tracked to pre-
vent discrimination. All employees are paid an
sharing system. In addition, executives who make
a critical contribution to Group performance
receive supplemental compensation, reflecting a
commitment to encouraging a results-orientated
culture and to offering competitive compensation
aligned with market practices.
Enabling employees to share
in the value they create
All employees around the world are paid a discre-
tionary profit-share out of operating income. In
2009, €11 million will be distributed to Automobile,
Finance and Transportation & Logistics Division
employees in the form of discretionary and non-
discretionary profit-shares for 2008, a year that
was shaped by a very unfavourable business
environment. To give employees a stake in their
company’s performance and provide support for
their personal projects, a variety of company sav-
ings plans have also been put into place in the
host countries.
Actively-managed, open-ended,
personalised career paths
The use of tools based on skills assessment, indi-
vidual performance and objective selection meth-
ods has been extended across the global
organisation. An agreement signed on 16 January
2009 will offer administrative employees, techni-
cians and supervisors new career opportunities
 / 63

Group workforce
–
> By job category > By region
Managers 17% Rest of the world 13%

Administrative
employees,
technicians and
supervisors
26% France 54%

Operators 57% Rest of Europe 33%

based on their job proficiency and performance. on international assignments. To anticipate

With the two agreements previously signed cov­ future needs and more effectively respond to
ering career development for production operators requests for secondment abroad, a dedicated
and other skilled workers, this means that the support system has been introduced for the
careers of operators, other skilled workers, admin- employees concerned.
istrative employees, technicians and supervisors
are now structured by three major agreements.
This approach is being gradually extended to
every host country, such as Spain for operators
and the United Kingdom for administrative IN LIAISON WITH EMPLOYEE
REPRESENTATIVES,
employees, technicians and supervisors. the Skills and Capabilities
Observatory provides an
For managers, the individual career manage- effective, forward-looking
vision of the Group’s
ment process is informed by an understanding skills-sets, making it possible
of their aspirations, results, capabilities and past to identify areas of key
experience. In addition to ongoing discussions strategic importance.
with their direct supervisors, managers have the
chance to review their career opportunities at
annual Careers Committee meetings organised
in every department. These Committees also
help to identify high potential managers in a
selection process that reflects the growing diver-
sity and globalisation of the Group’s managers
and experts. At the Group’s Institut Supérieur du
Management, high-potential managers attend
management courses aligned with their future
duties while pursuing career paths that broaden
their responsibilities.

International mobility
To more efficiently manage employees sec-
onded to international postings and to capitalise
on their international experience, an Interna-
tional Mobility Committee comprising human
resources managers was set up in 2008. During
the year, 765 employees of all nationalities were
64 / OUR COMMITMENT > social responsibility
A WIDELY RECOGNISED SOCIAL POLICY
PSA PEUGEOT CITROËN
was one of the first
companies in France
to sign agreements on
equal opportunity (2003)
and diversity (2004).
170
social integration
programmes were carried
out in France in 2008. One involved hiring
24 disadvantaged early school leavers under
skills-acquisition contracts with assistance
from the French Adult Training Association
(AFPA), the state-run employment agency
and the Vesoul local employment office.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
Ensuring equal opportunity
and promoting diversity
– variety of programmes to prepare young people
PSA Peugeot Citroën needs to become more
global, both geographically and in the make-up
of its teams. Nurturing a broad range of skills
from diverse backgrounds in-house ensures that
the Group more effectively reflects the diversity
of all its customers. PSA Peugeot Citroën applies
best practices in the fight against racism, xeno-
phobia, homophobia and, more generally, any
and all forms of intolerance towards people who
are different. It also guarantees respect for an
employee’s private life. In France, Spain and the
United Kingdom, joint labour-management diver-
sity and equal opportunity oversight committees
have been created to monitor effective applica-
tion of agreements. In France, the committee
verifies that merit raises and promotions are
awarded in the same proportions as the different
categories tracked across the organisation.
After four years of substantial, extensive prog-
ress, a new Diversity and Social Cohesion Agree-
ment was signed on 6 October 2008. PSA Peugeot
Citroën was awarded the AFNOR Diversity Label
in recognition of its commitment to equal oppor-
tunity and preventing discrimination. This com-
mitment has been extended to operations outside
France under the Global Framework Agreement
on Social Responsibility.
Promoting job opportunities
In France, vocational training partnerships with
national education systems are supporting a wide
for careers in automotive manufacturing and
sales and to help bring them into the workforce
with job-oriented training curricula. The 2008
Diversity and Social Cohesion Agreement
includes a section on fostering job opportunities
for people often excluded from the workforce by
supporting targeted initiatives for the disabled,
young people and marginalised individuals who
need help getting back into the job market.
Guaranteeing gender equality
in the workplace
A gender-balanced workforce is beneficial to
the Group’s performance. In 2008, French quality
standards agency AFAQ AFNOR Certification
renewed the Group’s “Equal Opportunity Employer”
label, based on its assertive gender equality poli-
cies and their compelling results. The agency rec-
ognised that these policies had delivered
significant gains in offering job opportunities for
women, developing a gender-balanced workforce,
ensuring equal pay for equal work, providing equal
career opportunities and promoting initiatives to
improve work/life balance, such as flexible work-
ing hours and near-site services.
As part of a process to detect and develop future
executives, a Mobility Committee identifies high-
potential individuals throughout the Group and
works with them to devise personalised career
paths. In 2008, 9% of these high potentials were
women, compared with 5% in 2007. Two of the nine
Executive Committee members are also women.
 / 65

10.5%
of the high-potential
30%
of managers
Percentage of women
in the workforce (worldwide)
managers under 30 are women. –

21.6
identified in 2008 came from outside

20.6
19.8
France versus 8.5% in 2007.

17.6
2002 2004 2006 2008

Ensuring the disabled have equal access
to the workplace
Committed to hiring and retaining disabled employ-
ees, PSA Peugeot Citroën currently employs more
than 6,300 disabled people in its Automobile,
Finance and Transportation & Logistics Divisions.
To broaden this commitment, the Group has helped
to develop and launch hanploi.com, a French job
search website for the disabled.
expertise by continuing to offer them real oppor-
tunities for personal growth in the years until they
retire, and increasing their salary accordingly. To
guarantee compliance, performance indicators,
such as raises, training opportunities and career
orientation reviews, are regularly analysed with
employee representatives.

An agreement signed on 21 July 2008 has renewed

and improved the 22 September 2005 agreement
designed to help disabled employees retain their
jobs, prevent disabilities and enable the disabled
to play a productive role in the workplace. It has
given further impetus to policies in this area and
raised awareness across the organisation of the
{{
MODIFICATIONS SUCH
AS THE INSTALLATION
need to integrate and recognise the contribution
of disabled employees. The agreement supports
OF SIDEWALK RAMPS have
made it easy for me to access my
other initiatives to promote equal opportunity within
workstation, but more importantly,
the organisation. Similar agreements have been
having a job that suits my handicap
signed in Argentina and Brazil.
is a real morale boost.”
In the Automobile Division in France, more than
LETITIA POINT / archivist
8% of employees are classified as handicapped
at the Metz plant
(including sheltered workers under contract),
compared with the 6% national rate that busi-
nesses are encouraged to reach.

Retaining and motivating older employees

Employees over 50 make up around 22% of the
consolidated workforce. Retaining and motivating
these “seniors” is one of the socially responsible
commitments described in the Global Framework
Agreement on Social Responsibility and the
diversity and equal opportunity agreements. It is
based on rightly recognising their experience and
66 / OUR COMMITMENT > social responsibility
Upholding and promoting
human rights
– sory labour, the abolition of child labour, the elim-
PSA  Peugeot Citroën is committed to growth
founded on socially responsible principles and
practices, consistently applied in every host coun-
try and business around the world. In 2003, the
Group pledged to uphold and promote the ten
principles of the United Nations Global Compact,
which are based on the Universal Declaration of
Human Rights, the International Labour Organisa-
tion’s Declaration on Fundamental Principles and
Rights at Work and the United Nations Convention
Against Corruption. PSA Peugeot Citroën also
actively supports employee freedom of associa-
tion and representation around the world and is
committed to respecting the independence and
pluralism of trade unions.
In 2006, the Global Framework Agreement on
Social Responsibility was signed with the Inter-
national Metalworkers’ Federation (IMF), the
European Metalworkers’ Federation (EMF) and
other unions in the major host countries. Engag-
ing both the Group and nearly 85 unions, the
Agreement has formalised PSA Peugeot Citroën’s
commitments in favour of fundamental human
rights, good human resources practices and
compliance of production partners, suppliers,
dealer networks and host communities with the
Group’s social responsibility practices.
The Agreement covers support and promotion of
human rights, refusal to accept complicity in
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
human rights abuses, freedom of association, the
recognition of the right to collective bargaining,
the elimination of all forms of forced and compul-
ination of discrimination in hiring and career
development, the fight against corrupt practices
and the prevention of conflicts of interest.
PSA Peugeot Citroën intends to make compliance
with its social responsibility practices a core com-
ponent of its purchasing policy. In fact, compli-
ance with the principles of the International Labour
Organisation is one of the key criteria in the sup-
plier approval process, and non-compliance can
result in removal from the Group’s suppliers list.
A detailed guide specifying the Group’s social
responsibility and environmental requirements
has been sent to its 1,000 largest suppliers in
order to obtain a formal commitment from them.
Implementing best
practices worldwide
–
PSA Peugeot Citroën ensures that best human
resources management practices are applied in
all of its host countries, paying special attention to
social and corporate citizenship issues. Examples
of the numerous initiatives undertaken around the
world include the recent creation of a works coun-
cil in Algeria, the implementation of human rights
training in Slovakia, Poland and Brazil, and the
introduction of consultation and tracking proce-
dures in Russia.

The Global Framework Agreement on Social
Responsibility also covers the Group’s contribu-
tion to the economic and social development of
host communities, in particular by using and
training local human resources whenever pos-
sible and cooperating with local authorities.
Forging training partnerships in host
countries and communities
PSA Peugeot Citroën has formed a large number
of partnerships with national employment and
vocational training agencies, as well as with social
integration associations. The Group signed the
French Charter of Companies Supporting Equal
Opportunity in Education in 2008 and has worked
with France’s National Education Ministry and
local partners to set up training centres special-
ised in manufacturing and sales in Brazil, China,
Mexico and Slovakia. In addition, at Citroën’s
request, technical “teachers without borders”
regularly conduct one-off training programmes in
11 countries, including Cameroon, Madagascar,
Tunisia and Turkey.
Using audits to gauge progress
Each year, data are reported by every subsidiary
around the world via a dedicated social reporting
system to comply with France’s NRE legislation
and Global Reporting Initiative guidelines. With
the creation of an internal social audit process in
2005, the Group strengthened its procedures for
verifying compliance with legal and regulatory
standards, contractual commitments and social
responsibility principles. In addition to the internal
audit process, external auditors verify employee
/ 67
relations information and compliance with the
Group’s social responsibility commitments. In
2008, 19 facilities or units were audited, with a
focus on application of the Global Framework
Agreement on Social Responsibility, hiring
procedures and non-discrimination practices.
A more detailed presentation of the employee relations indica-
tors may be found in the “Social and Society” chapter of the 2008
Sustainable Development Performance Indicators supplement.
THE GLOBAL FRAMEWORK AGREEMENT ON SOCIAL
RESPONSIBILITY
–
Local employee relations oversight committees, composed of human resources
managers and union representatives, have been set up in the Group’s main
host countries. Each year, action plans are prepared to improve compliance
with the commitments expressed in the Global Framework Agreement on Social
Responsibility. The plans are drawn up locally to ensure that they meet the specific
needs of each country. The oversight committees perform an annual review
of these action plans and of the Agreement’s application in each subsidiary,
and a Group-wide report is presented to the Extended European Works Council.
This process ensures that PSA Peugeot Citroën continues to fulfil its commitments
to fundamental human rights, good human resources practices and social
responsibility standards on an ongoing basis.
68 / OUR COMMITMENT > corporate citizenship

INNOVATING
FOR SAFER MOBILITY
in 2008 A new remote fleet management service
Two new models, the Citroën C5 and called Active Fleet Data was launched.
Peugeot 308 CC, earned the maximum
five-star rating in Euro NCAP tests.

Sustainable PSA Peugeot Citroën has considered the safety cial vehicles, from budget to executive ranges. To
development of all road users to be a top priority for many prevent accidents (primary or active safety), the
objective no.8 years, a position that has enabled it to develop Group’s vehicles are designed to compensate as
some of the safest vehicles in the world. The much as possible for bad driving, faulty infra-
Broadly deploy Group intends to further improve safety thanks structure and adverse weather conditions. Their
to its unique expertise in the field of automotive architecture is engineered to deliver handling
telematics services to telematics, which has already been illustrated performance, precision steering and braking
improve user safety by the emergency call system. Its goal is to con- power that rank among the best in the market.
–
1 million enabled vehicles on the road tinue to deploy new equipment and services to Moreover, in emergency situations, they offer such
in 10 European countries by 2011. offer mobility that increasingly combines safety driver assistance technologies as antiblocking
and environmental protection. systems (ABS), emergency braking assist (EBA),
lane departure warning systems and electronic
stability programs (ESP), which help drivers main-
Preventing accidents tain control even in a skid.
EFFICIENT RESCUE
OPERATIONS:
and protecting victims In the event of an impact, the passenger compart-
Victim removal – ment is designed to act as a survival cell to pro-
instructions developed Improvements in safety are rolled out across the tect the vehicle’s occupants (secondary or
by the Group facilitate
the job of rescue workers entire line-up of Peugeot and Citroën models, passive safety), with appropriate restraint sys-
after an accident. including both passenger cars and light commer- tems including Isofix attachment points for child
seats, seatbelt load limiting retractors and dual-
stage airbags. The Group’s expertise in this area
is illustrated by the maximum five-star rating for
adult occupant protection awarded by the inde-
pendent organisation Euro NCAP to 13 Peugeot
and Citroën models. Starting in 2009, the Group’s
models will be subject to the new Euro NCAP
assessment process alongside vehicles from
competing brands. The overall rating will take into
account the vehicle’s performance in terms of
adult, pedestrian and child protection, as well as
the presence of on-board driver assistance sys-
tems such as ESP. The Group aims to provide all
of its new models with the highest standards of
protection in case of an accident.

Leader in emergency
call systems
– Peugeot and Citroën have set up a range of assist­
PSA Peugeot Citroën has played a pioneering role
in post-accident or tertiary safety, which helps to
attenuate the effects of an accident by facilitating
emergency rescue and shortening response
times. It is the only volume carmaker to deploy a
wide-scale, location-aware emergency call sys-
tem, free of charge and without any cut-off date.
At end-2008, 650,000 Peugeots and Citroëns on
the road in Europe were equipped with the system.
Of these, 550,000 benefited from the premium*
service, available in nine European countries.
In the event of an accident or medical emergency
in the car, occupants can alert a dedicated assist­
ance centre simply by pressing the SOS button.
In the case of a collision, the same alert is sent
automatically. Thanks to the car’s GPS system and
on-board GSM mobile phone, assistance person-
nel can pinpoint the car’s location, thereby
enabling rescue services to respond more quickly
and effectively. More than 2,700 emergency alerts
have been sent to local rescue services since the
service was introduced in 2003.
Telematics for more effective
mobility management
– impact.
The widespread deployment of the emergency call
system has allowed PSA Peugeot Citroën to build
and master a technical architecture that can now be
/ 69
{{
PSA PEUGEOT CITROËN’S EMERGENCY CALL SYSTEM
is free, requires no subscription and has no cut-off date. The Group’s unique
experience in deploying this technology in Europe has put it in a position to offer
new telematics services for consumers and professional drivers. As these services
become more widespread, they will improve road safety, enhance mobility
and deliver environmental benefits.”
Franck Batocchi / TELEMATICS EXPERT AT PSA PEUGEOT CITROËN
used to support an ambitious strategy in telematics.
Its new services are designed to make mobility more
efficient and environmentally friendly. Since 2002,
ance services based on the shared RTx/NaviDrive
telematics platform that offer, in a single unit, a radio,
CD player, GSM hands-free telephone and GPS
navigation system. Thanks to the GPS system, cus-
tomers benefit from much faster roadside assist­
ance, including repairs and towing service. At
Peugeot, the “Services Mobiles” mobility assistance
service launched in 2007 allows users to set up traf-
fic warnings on pre-set routes and download sug-
gested routes that have been optimised for current
traffic conditions. By rationalising their trips, drivers
help reduce their vehicles’ environmental impact. WITH GRIP CONTROL
ON THE PEUGEOT 3008
AND SNOW MOTION
In 2008, Peugeot and Citroën introduced the Active ON THE CITROËN C5,
Fleet Data service for remote fleet management. the Group offers smart
The service transmits regular, precise data on systems for enhanced
traction.
vehicle performance without driver intervention
through a unit installed after sale. Twice a week, the
interp@rc software provides updates on kilometre
readings, the number of kilometres before next
inspection and other general parameters, as well
as diagnostics for mechanical components such
as the gearbox and emissions control system. Fleet
managers are alerted in real time by e-mail if the According to the European Commission,
system detects mechanical or safety issues such equipping every vehicle on the road
as low oil, worn brake pads or underinflated tyres. with the emergency call system would save
2,500
By promoting regular maintenance, the Active Fleet
Data service also helps reduce environmental
* When the vehicle is not in one of the nine countries where the
premium call service is available, it calls Europe’s 112 emergency
number, which is not location-aware. lives a year in Europe.
70 / OUR COMMITMENT > corporate citizenship

SUPPLIER RELATIONS
in 2008 The Purchasing Business School,
305 suppliers, representing 71% an in-house training programme
of worldwide standard parts purchases, for purchasing excellence, was launched.
committed themselves to the Group’s
environmental and social requirements.

Sustainable
development
objective no.5
Deploy the supplier
guidelines concerning
PSA Peugeot Citroën’s
social and environmental
responsibility requirements
– Citroën has built special relationships with a select
Involve the top 500 suppliers
in the process by 2010.
70-75%
That’s how much
standard parts and components
represent in a vehicle’s average
production cost.
PSA Peugeot Citroën knows that solid ties with
suppliers are key to meeting its strategic
objectives. Suppliers are deeply involved in the
Group’s efforts to reduce costs, improve qual-
ity and drive innovation. To maintain lasting,
mutually beneficial relations, the Group has
lent suppliers a helping hand during the reces-
sion and encouraged their efforts in the area
of social and environmental responsibility.
Facing the recession
together
– most of its innovation capabilities. In the area of
The entire automobile industry, from carmakers to
automotive equipment suppliers, has been hit by
the cash crunch and plummeting demand. One
of PSA Peugeot Citroën’s priorities in this environ-
ment is to secure its supplies and support its sup-
pliers so as to ward off the most critical situations
upstream. To give suppliers more breathing room,
the Group has paid invoices more quickly (a move
that represents €1.3 billion in assistance) and
contributed €200 million to France’s Automobile
Industry Investment Fund (FMEA). In addition, the
Purchasing Department has put together an
expanded team of technical, financial and human
resources experts to manage day-to-day relations
with suppliers in difficulty.
At the same time, PSA  Peugeot Citroën has
continued efforts to achieve technical savings by
purchasing parts combining the best cost and
service performance. The Group also intends to
take advantage of the downturn in raw material
prices, after weathering five years of negative
price impact.
Recognising suppliers’
performance
–
As part of its win-win approach, PSA Peugeot
group of strategic suppliers who are involved in
its strategic choices further upstream. This type
of skills sharing allows each partner to make the
environmental solutions, for example, the Group
is involved in large-scale partnerships with Valeo
on the Stop & Start system, Bosch on HYbrid4
technology and Michelin on fuel-efficient Energy
Saver tyres. To nurture relationships of trust, the
Group also awards trophies to both large and
small suppliers each year for outstanding efforts
in quality, innovation, parts and service and cost
performance. The fifth awards ceremony was held
in March 2009.
Making sustainable
development part
of purchasing
–
Cost is not the only factor when it comes to taking
relations with suppliers to a higher level. For this to
happen, suppliers must comply with social and

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report


STANDARD PARTS BY REGION OF PRODUCTION (in 2008)
–
> French plants
France 61%
Rest of the world
6%
Rest of Europe
33%
environmental standards that are aligned with the
Group’s and be committed to continuous improve-
ment in this area. In 2006, PSA Peugeot Citroën
published supplier guidelines for its social and envi-
ronmental responsibility requirements. All suppliers
receive a copy and are asked to commit to the
standards. Targeted audits are conducted for sup-
pliers deemed to be “at risk”. The Group then helps
them define and deploy appropriate action plans.
Making sustainable development part of pur-
chasing also means raising awareness among
purchasing officers and internal auditors about
sustainability issues in the supply chain. Special
training sessions are offered for these team mem-
bers, with assistance from the Sustainable Devel-
opment Department. The Group Vice-President,
Purchasing, also regularly addresses the issue of
sustainable development in conferences with the
entire Purchasing Department.
Enhancing purchasing
officers’ competencies
– regenerated solvent that is just as
In 2008, PSA Peugeot Citroën launched an inter-
nal training programme called Purchasing Busi-
ness School to keep its purchasing teams’ skills
sets aligned with their profession’s fast-changing
environment. During the two-month session, pur-
chasing officers receive training in English and
French on quality issues, cost analysis and sup-
plier risk management. By bringing together team
members from different regions (France, Slova-
kia, Turkey, Latin America), the Purchasing Busi-
ness School offers a perfect opportunity for
> Other European Union plants
(outside France)
France 24%
Rest of the world
6%
Rest of Europe
70%
experience and knowledge sharing. During the
courses, participants are often asked to resolve
real-life situations, and at the end of the session,
they present a purchasing file to a jury of profes-
sionals. In 2008, 90 purchasing officers who
attended three separate sessions received diplo-
mas from the Purchasing Business School. One
of the sessions was devoted specifically to the
Group’s purchasing unit in Brazil.
/ 71
e27
Worldwide purchases
 billion
in 2008. Standard parts used in vehicle
manufacturing accounted for €21 billion
of the total.
{{
SARP INDUSTRIES HAS
HELPED PSA PEUGEOT
CITROËN WITH INDUSTRIAL
WASTE MANAGEMENT
SINCE 1980.
Thanks to hands-on R&D, the focus
of our partnership has shifted from
eliminating waste to systematically
looking for ways to recover hazardous
waste. For several years now, we have
provided the Group’s plants with
effective as new solvent. More recent
research has addressed ways to
re-use metal particles and cutting
oils in sludge from the Group’s
mechanical sub-assembly plants.”
Pascal Gauthier / Chairman and
CEO of SARP Industries and winner
of the Jury’s special prize for sustainable
development at the fifth annual Supplier
Trophies ceremony
72 / OUR COMMITMENT > corporate citizenship

CUSTOMER RELATIONS
in 2008
Quality: Warranty costs were
down 42% at end-2008 compared
with first-half 2006.
The Group’s Responsible Communications
Charter was distributed to Communication,
Marketing, Legal Affairs, Purchasing and other
concerned staff in French, English, Spanish
and Chinese.

Sustainable As the second-largest expense in the average
development European household, buying an automobile is
objective no.10 a major consumer decision. To live up to cus-
tomer expectations, PSA Peugeot Citroën con-
Implement the stantly enhances vehicle features and quality,
as well as related services. The Group is also
PSA Peugeot Citroën committed to advertising its products in a
Responsible responsible manner.
Communications
Charter Health, safety and
–
environmental issues
– Ethics and customer
PSA Peugeot Citroën’s first responsibility towards
customers is to provide vehicles that preserve
the health and safety of the driver, passengers
and other people on the road, in compliance
with current regulations. The Group is also con-
stantly working on technological solutions that
respond to growing awareness of the automo-
bile’s environmental impact. Its research on
vehicle architecture and materials focuses on
reducing the automobile’s on-the-road impact
as much as possible.
To help customers make an informed buying
decision, the Peugeot and Citroën have also
put fuel-efficiency labels on showroom vehicles
and created their own eco-labels (Blue Lion
and Airdream).
respect
–
The customer relationship is based on trust. As
a critical component of both brands’ sales policy,
the sales contract recognises the importance of
the contractual warranty, along with customers’
high expectations in this area and the level of
attention required in the dealer networks. To this
end, sales teams receive specific guidelines
and training. A dedicated unit has been set up
within Banque PSA Finance to carefully monitor
compliance with lending rules. The unit also
intervenes to prevent and manage risks from
overextended Peugeot or Citroën customers, in
compliance with current legislation.

Customer satisfaction
and quality
– Led by the Quality Department,
To guarantee superior service, the brands imple-
ment continuous quality improvement plans at
three key stages in the customer relationship:
purchase, delivery and repair (plus post-repair
quality control). Feedback from customers and
the dealer networks is carefully tracked. The
Peugeot and Citroën brands’ ISO 9001 certifica-
tion for quality management systems was
renewed in 2006. Outside France, the brands
apply for certification from the most representa-
tive organisation in the local market.
Responsible advertising
–
An internal validation process has been set up to
review the ethical quality of the Group’s advertis-
ing. In 2007, the Group prepared a Responsible
Communications Charter to ensure that corporate
social responsibility concerns – such as respect
for people, the environment and awareness of the
economic issues involved in buying a car – are
taken into account in its advertising. The Charter,
which was deployed in 2008 among the appropri-
ate Group and brand teams and their suppliers,
/ 73
{{
WE NEED TO INFORM CONSUMERS ABOUT
OUR VEHICLES’ PERFORMANCE, NOTABLY IN TERMS
OF ENVIRONMENTAL IMPACT, WITHOUT PROMISING
MORE THAN WE CAN DELIVER.
That’s why we developed a Responsible Communications Charter in-house
to help teams in all host countries make the right decisions for all types
of media. Everyone involved in communications and their partners should apply
the Charter’s guidelines systematically.”
Virginie de chassey / PSA PEUGEOT CITROËN’S SUSTAINABLE DEVELOPMENT
REPRESENTATIVE
covers all mass media communications, including UNWAVERING FOCUS
TV commercials, the Internet, print ads, events ON QUALITY
and point-of-purchase advertising. –
Anticipating expectations the entire Group has pulled together
to put PSA Peugeot Citroën among
– the top five in JD Power’s 2010
PSA Peugeot Citroën conducts tests with groups Customer Satisfaction Index (CDI)
of consumers to see how its future vehicles and study. The Department is set up
services are perceived. In addition to feedback to get a comprehensive view
from customers, the Group meets with consumer of customer satisfaction in the four
organisations to get a better view of the types of areas measured by JD Power:
questions car owners are asking, as well as how quality and reliability, dealer service
people’s relationship with the automobile and indi- satisfaction, vehicle appeal and
vidual mobility is changing. Lastly, the Group ownership costs.
shares its experience with local players in many
markets, notably in Latin America and China.
STEADY DECLINE IN WARRANTY COSTS (Basis 100)
–
(42%)
100
86
78
72
66
58
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008
74 / OUR COMMITMENT > corporate citizenship
LOCAL DEVELOPMENT AND
COMMUNITY OUTREACH
in 2008
The first phase of the “Main à la Pâte”
hands-on educational programme in
Slovakia was completed. The Group has
supported the programme since 2004.
Sustainable
development
objective no.9
Finance innovative
mobility solutions
–
INVOLVING YOUNG PEOPLE
IN ENVIRONMENTAL
PROTECTION
– PSA Peugeot Citroën’s sponsorship approach illus-
PSA Peugeot Citroën in Argentina
carried out several projects with local
NGO Cascos Verdes in 2008. Through
the Crear Conciencia programme,
the organisation helps give mentally
disabled young people a chance
to attend university and play a role
in society with a two-year training
course on environmental protection.
Participants visit local classrooms
to raise awareness about the
environment. In 2008, second-year
students had the opportunity to tour
and study the Buenos Aires plant’s
water treatment plant.
PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report
In Brazil, the Group won a Sustainable
Attitude prize for designing and
distributing a brochure on child
passenger safety.
When it comes to meeting its responsibilities
towards the community, PSA Peugeot Citroën
focuses first and foremost on designing and pro-
ducing safe, environmentally friendly cars using
good labour practices. The Group takes its
responsibility a step further by getting involved
in sponsorship and community outreach pro-
grams on a daily basis. This policy is expressed
at both the corporate and local levels.
Promoting safety,
environmental protection
and mobility
–
trates its commitment to the community. In line with
the Group’s sustainable development challenges,
the first three areas of involvement cover road safety,
environmental protection and sustainable mobility.
In addition to installing safety equipment in its
vehicles, the Group carries out campaigns to
raise driver awareness, as drivers are the key to
road safety. In all host countries, the Group’s sites
regularly organise road safety exhibits and pro-
grammes, including remedial and safe driving
courses, free vehicle inspections, driving simula-
tors and brochure campaigns. In the Paris suburb
of Aulnay, for example, PSA Peugeot Citroën
helped create a go-kart driving school to teach
children about road safety hazards. The Group
has also organised road safety days in primary
schools in China and Latin America. These initia-
tives are being led in partnership with educational
institutions and organisations like the Global
Road Safety Partnership in Brazil, the MACIF
insurance company, local fire brigades and
France’s road safety association.
Concerning the environment, the Group’s sites
support local projects to preserve, restore or
reclaim surrounding natural areas, such as the
banks of the Seine river near the Poissy plant in
the Paris area. Awareness campaigns targeted to
employees and the general public are also carried
out, notably to encourage eco-driving practices.
PSA Peugeot Citroën is actively involved in the
societal discussion on mobility. Mobility is a basic
right that provides access to jobs, healthcare and
other fundamental rights. In 2000, PSA Peugeot
Citroën created the City on the Move Institute
(IVM), which has initiated and promoted research
and trials aimed at understanding how urban
mobility is changing. Its projects bring together
business people, researchers, academics, archi-
tects, urban planners, urban developers, local
authorities and other key players. One of these
projects on the day-to-day mobility of employees
led to the publication by Editions Les Carnets de
l’Info of a book entitled Domicile-travail, les sala-
riés à bout de souffle! by Éric Le Breton, the proj-
ect’s scientific director. IVM also organised a

mobility workshop as part of France’s Social Inclu-
sion Summit in 2008. In China and Latin America,
IVM continued to support innovative thinking on
the quality of urban life, in line with local priorities.
Combating exclusion
and fostering inclusion
– ian, environmental, etc.). The winning projects
PSA Peugeot Citroën’s sponsorship policy also
covers the fight against exclusion. Projects are
organised by the various sites to support or
supplement work being done by local organisa-
tions. At the corporate level, the Group has sup-
ported the Paris emergency social services
agency for more than ten years and is a member
of the agency’s Board of Directors. The Group
donates and maintains the organisation’s entire
fleet of vehicles, which drive around Paris on
the lookout for homeless people in need of
emergency assistance.
Giving back to the local
community
– schools of Trnava called “La Main à la Pâte”. Introduced in France in the 1990s
In addition to its corporate commitments,
PSA Peugeot Citroën carries out programs at all
its sites targeted to neighbours and surrounding
communities as part of local sponsorship and
social responsibility action plans. These programs
/ 75
LONG LIVE THE SEINE,
an association created
in 2004 and supported
by the PSA Peugeot
Citroën plant in Poissy,
teaches children
in recreational centres
about the importance
of preserving
the environment.
can either be organised by the site itself or support
existing initiatives, such as the Fondation de la
Deuxième Chance in Rennes. For several years,
the Vélizy facility has participated in “Run For the
Heart,” a humanitarian run to raise public aware-
ness of the importance of organ donations. Lastly,
several sites organise annual Solidarity Trophies
competitions during which employees can present
projects to support a particular cause (humanitar-
receive an award, along with financial support.
HANDS-ON METHOD
–
From 2004 to 2008, PSA Peugeot Citroën supported a Franco-Slovak
experiment to promote a hands-on method of teaching science in the primary
by Nobel physics prize winner Georges Charpak, this method emphasises
hands-on experiments, exploration and working in groups. Phase One
of the project, which brought together PSA Peugeot Citroën and the French
and Slovak education systems, was completed at end-2008. In 2009,
the partnership will continue in Trnava and expand to other regions of Slovakia.
76 /

Close-up
Peugeot 308 instrument panel

OUR
performance
 / 77

Supported by its dedicated teams, PSA Peugeot Citroën is deploying

the resources needed to withstand the impact of the recession.
In 2008, we maintained our share of both the European and global
markets, while continuing to demonstrate a clear commitment
to our social and environmental responsibilities.

Sales performance
Europe’s second largest
automaker, with 13.8%
of the market.

CO2 emissions Quality

Europe’s lowest corporate average 40% decline
CO2 emissions, at 140 grams per km in number of end-of-line
in 2008, according to the ranking factory defects.
prepared by ADEME*.
*France’s Agency for the Environment and Energy Management.

The following chapter presents a selection of the Group’s performance indicators,

which are described in full detail on the CD-Rom, attached on page 93. Peugeot Partner Tepee

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

78 / OUR PERFORMANCE > financial indicators

Consolidated
Balance Sheets
31 December 2008

Manufacturing
and Sales Finance
(in million euros)
companies companies Eliminations Total

ASSETS
Goodwill 1,237 75 – 1,312
Intangible assets 4,061 96 – 4,157
Property, plant and equipment 14,064 41 – 14,105
Investments in companies at equity 732 14 – 746
Investments in non-consolidated companies 48 13 – 61
Other non-current financial assets 848 46 (25) 869
Other non-current assets 152 1 – 153
Deferred tax assets 468 75 – 543
Total non-current assets 21,610 361 (25) 21,946

Operating assets
Loans and receivables - finance companies – 22,495 (136) 22,359
Short-term investments - finance companies – 1,182 – 1,182
Inventories 7,757 – – 7,757
Trade receivables - manufacturing and sales companies 2,001 – (146) 1,855
Current taxes 189 35 (17) 207
Other receivables 1,897 1,028 (256) 2,669
11,844 24,740 (555) 36,029
Current financial assets 515 – – 515
Cash and cash equivalents 2,040 1,280 (90) 3,230
Total current assets 14,399 26,020 (645) 39,774
Total assets 36,009 26,381 (670) 61,720

EQUITY AND LIABILITIES

Equity
Share capital 234
Treasury stock (303)
Retained earnings and other accumulated equity, excluding minority interests 13,212
Minority interests 134
Total equity 13,277

Non-current financial liabilities 4,491 – – 4,491

Other non-current liabilities 2,793 – – 2,793
Non-current provisions 876 24 – 900
Deferred tax liabilities 1,321 450 – 1,771
Total non-current liabilities 9,481 474 – 9,955

Operating liabilities
Financing liabilities – 21,864 (118) 21,746
Current provisions 2,053 27 – 2,080
Trade payables 8,428 – (11) 8,417
Current taxes 76 27 (17) 86
Other payables 3,795 1,070 (399) 4,466
14,352 22,988 (545) 36,795
Current financial liabilities 1,818 – (125) 1,693
Total current liabilities 16,170 22,988 (670) 38,488
Total equity and liabilities 61,720

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 79

31 December 2007 31 December 2006

Manufacturing Manufacturing
and Sales Finance and Sales Finance
companies companies Eliminations Total companies companies Eliminations Total

1,488 75 – 1,563 1,488 75 – 1,563

3,885 94 – 3,979 3,947 87 – 4,034
14,652 44 – 14,696 15,221 47 – 15,268
725 12 – 737 687 12 – 699
47 3 – 50 53 – – 53
1,121 47 – 1,168 1,321 47 – 1,368
126 1 – 127 96 1 – 97
428 37 – 465 499 36 – 535
22,472 313 – 22,785 23,312 305 – 23,617

– 23,393 (170) 23,223 – 22,802 (99) 22,703

– 3,310 – 3,310 – 2,818 – 2,818
6,913 – – 6,913 6,826 – – 6,826
2,857 – (157) 2,700 3,043 – (193) 2,850
169 37 (44) 162 210 29 (26) 213
1,782 772 (134) 2,420 1,719 617 (68) 2,268
11,721 27,512 (505) 38,728 11,798 26,266 (386) 37,678
1,483 – – 1,483 1,132 – – 1,132
5,185 943 (149) 5,979 6,339 620 (292) 6,667
18,389 28,455 (654) 46,190 19,269 26,886 (678) 45,477
40,861 28,768 (654) 68,975 42,581 27,191 (678) 69,094

234 235
(271) (261)
14,282 13,744
310 388
14,555 14,106

4,294 – – 4,294 4,125 – – 4,125

2,886 1 – 2,887 2,759 – – 2,759
1,109 23 – 1,132 1,383 23 – 1,406
1,689 364 – 2,053 1,854 329 – 2,183
9,978 388 – 10,366 10,121 352 – 10,473

– 24,670 (148) 24,522 – 23,259 (215) 23,044

2,132 29 – 2,161 1,747 38 – 1,785
10,600 – (29) 10,571 10,481 – (25) 10,456
158 55 (44) 169 152 43 (26) 169
4,241 732 (292) 4,681 4,075 847 (261) 4,661
17,131 25,486 (513) 42,104 16,455 24,187 (527) 40,115
2,091 – (141) 1,950 4,551 – (151) 4,400
19,222 25,486 (654) 44,054 21,006 24,187 (678) 44,515
68,975 69,094
80 / OUR PERFORMANCE > financial indicators

Consolidated
Statements of Income

In order to better reflect the economic reality of the Group’s business reported Automobile Division revenues and consequently consolidated
transactions, the accounting presentation of certain previously report- revenues. For a more detailed explanation, please refer to note 2 to the
ed figures has been changed, which has had the effect of reducing consolidated financial statements in the 2008 Registration Document.

2008

Manufacturing
and Sales Finance
(in million euros)
companies companies Eliminations Total

Revenues 52,705 2,088 (437) 54,356

Cost of goods and services sold (44,146) (1,211) 437 (44,920)
Selling, general and administrative expenses (6,521) (320) – (6,841)
Research and development expenses (2,045) – – (2,045)
Recurring operating income (7) 557 – 550

Non-recurring operating income and (expenses) (916) (1) – (917)

Operating income (923) 556 – (367)

Interest income 247 – – 247

Finance costs (343) – – (343)
Other financial income and (expenses), net (189) (1) – (190)
Income before tax of fully consolidated companies (1,208) 555 – (653)

Current taxes (156) (137) – (293)

Deferred taxes 449 (60) – 389
Income taxes 293 (197) – 96

Share in net earnings of companies at equity 57 – – 57

Consolidated profit (loss) for the year (858) 358 – (500)

Attributable to equity holders of the parent (699) 356 – (343)

Attributable to minority interests (159) 2 – (157)

(in euros)
Basic earnings per e1 par value share (1.51)
Diluted earnings per e1 par value share (1.51)

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 81

2007 2006

Manufacturing Manufacturing
and Sales Finance and Sales Finance
companies companies Eliminations Total companies companies Eliminations Total

57,132 1,999 (455) 58,676 53,789 1,761 (365) 55,185

(46,909) (1,064) 455 (47,518) (44,002) (833) 365 (44,470)
(7,007) (327) – (7,334) (7,255) (324) – (7,579)
(2,072) – – (2,072) (2,017) – – (2,017)
1,144 608 – 1,752 515 604 – 1,119

(632) – – (632) (808) – – (808)

512 608 – 1,120 (293) 604 – 311

283 – – 283 178 – – 178

(306) – – (306) (234) – – (234)
(16) (1) – (17) (48) (1) – (49)
473 607 – 1,080 (397) 603 – 206

(218) (149) – (367) (101) (178) – (279)

102 (37) – 65 150 (27) – 123
(116) (186) – (302) 49 (205) – (156)

48 – – 48 20 – – 20
405 421 – 826 (328) 398 – 70

467 418 – 885 (211) 394 – 183

(62) 3 – (59) (117) 4 – (113)

3.88 0.80
3.86 0.80
82 / OUR PERFORMANCE > financial indicators

Consolidated Statements
of Cash Flows

2008

Manufacturing
and Sales Finance
(in million euros)
companies companies Eliminations Total

Consolidated profit (loss) for the year (858) 358 – (500)

Adjustments for:
- Depreciation, amortisation and impairment 3,664 15 – 3,679
- Non-current provisions (136) 1 – (135)
- Changes in deferred tax (447) 63 – (384)
- (Gains) losses on disposals and other 124 – – 124
Share in net (earnings) losses of companies at equity, net of dividends received (37) – – (37)

Revaluation adjustments taken to equity and hedges of debt 70 – – 70

Working capital 2,380 437 – 2,817
Changes in operating assets and liabilities (2,924) 153 16 (2,755)
Net cash from (used in) operating activities (544) 590 16 62

Proceeds from disposals of shares in consolidated companies – – – –

Proceeds from disposals of investments in non-consolidated companies – – – –
Acquisitions of shares in consolidated companies (2) – – (2)
Investments in non-consolidated companies (25) (12) – (37)
Proceeds from disposals of property, plant and equipment 69 10 – 79
Proceeds from disposals of intangible assets 9 – – 9
Investments in property, plant and equipment (2,080) (14) – (2,094)
Investments in intangible assets (1,069) (11) – (1,080)
Change in amounts payable on fixed assets (1) – – (1)
Other (122) 5 – (117)
Net cash from (used in) investing activities (3,221) (22) – (3,243)

Dividends paid:
- To Peugeot S.A. shareholders (342) – – (342)
- Intragroup 168 (168) – –
- To minority shareholders of subsidiaries (17) (2) – (19)
(Purchases) sales of treasury stock (43) – – (43)
Changes in other financial assets and liabilities 929 – 42 971
Other – 3 – 3
Net cash from (used in) financing activities 695 (167) 42 570

Effect of changes in exchange rates (56) (64) 1 (119)

Net increase (decrease) in cash and cash equivalents (3,126) 337 59 (2,730)

Net cash and cash equivalents at beginning of year 5,143 943 (149) 5,937
Net cash and cash equivalents at end of year 2,017 1,280 (90) 3,207

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 83

2007 2006

Manufacturing Manufacturing
and Sales Finance and Sales Finance
companies companies Eliminations Total companies companies Eliminations Total

405 421 – 826 (328) 398 – 70

3,559 14 – 3,573 3,686 12 – 3,698

(227) 1 – (226) (148) (1) – (149)
(114) 38 – (76) (139) 29 – (110)
(94) – – (94) (54) 2 – (52)
(46) – – (46) (17) – – (17)

32 1 – 33 11 4 – 15
3,515 475 – 3,990 3,011 444 – 3,455
920 37 134 1,091 424 (234) (37) 153
4,435 512 134 5,081 3,435 210 (37) 3,608

– – – – 2 – – 2
11 – – 11 – – – –
– – – – (1) – – (1)
(7) (3) – (10) (19) (13) – (32)
148 9 – 157 155 6 – 161
8 – – 8 3 – – 3
(1,924) (13) – (1,937) (2,520) (11) – (2,531)
(789) (14) – (803) (937) (16) – (953)
(132) – – (132) (101) – – (101)
(148) 1 – (147) (54) – – (54)
(2,833) (20) – (2,853) (3,472) (34) – (3,506)

(309) – – (309) (309) – – (309)

157 (157) – – 161 (161) – –
(11) – – (11) (6) (32) – (38)
(23) – – (23) (39) – – (39)
(559) – 8 (551) 205 – (23) 182
– – – – – – – –
(745) (157) 8 (894) 12 (193) (23) (204)

(22) (12) 1 (33) 45 2 (2) 45

835 323 143 1,301 20 (15) (62) (57)

4,308 620 (292) 4,636 4,288 635 (230) 4,693

5,143 943 (149) 5,937 4,308 620 (292) 4,636
84 / OUR PERFORMANCE > Product indicators

Product indicators
Consolidated worldwide sales by region
2008 2007 2006

Western Europe 2,079,100 2,323,600 2,296,200

Peugeot 1,084,200 1,223,700 1,224,900
Citroën 994,900 1,099,900 1,071,300

Central and Eastern Europe 204,100 217,500 193,000

Peugeot 115,500 126,200 112,900
Citroën 88,600 91,300 80,100

Russia 59,200 37,200 29,400

Peugeot 48,300 26,300 16,100
Citroën 10,900 10,900 13,300

Latin America 263,300 266,000 215,100

Peugeot 166,400 181,200 155,400
Citroën 96,900 84,800 59,700

China 179,100 208,900 202,500

Peugeot 77,100 93,200 81,900
Citroën 102,000 115,700 120,600

Rest of the world 166,800 180,600 179,300

Peugeot 121,400 135,200 132,400
Citroën 45,400 45,400 46,900

Total assembled vehicles 2,951,600 3,233,800 3,115,500

Peugeot 1,612,800 1,785,800 1,723,600
Citroën 1,338,800 1,448,000 1,391,900

Total CKD units 308,800 194,600 250,400

Peugeot 291,400 181,200 236,200
Citroën 17,400 13,400 14,200

Total assembled vehicles and CKD units 3,260,400 3,428,400 3,365,900

Peugeot 1,904,100 1,967,100 1,959,800
Citroën 1,356,300 1,461,300 1,406,100

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 85

Sales

Worldwide sales by model

(passenger cars and light commercial vehicles) 2008 2007 2006

Peugeot brand
107 106,500 104,400 98,600
1007 11,000 18,600 34,100
206 292,300 308,200 475,100
207 468,300 520,200 300,500
307 142,300 369,100 447,000
308 290,100 82,500 –
405 211,100 131,300 158,200
406 1,700 3,000 3,300
407 81,400 136,000 181,500
607 3,900 7,500 10,500
807 13,500 21,100 24,200
4007 13,700 6,300 –
Expert 39,900 43,600 33,100
Partner 147,600 160,700 148,500
Boxer 55,300 54,200 44,600
Bipper 25,100 400 –
Others 400 – 600
TOTAL 1,904,100 1,967,100 1,959,800
of which diesel-powered versions 877,900 951,600 914,400
of which passenger cars 1,671,500 1,748,000 1,759,400
of which light commercial vehicles 232,600 219,100 200,400

Citroën brand
C1 106,700 99,500 90,300
C2 67,100 94,900 103,900
C3 242,100 276,700 286,700
ZX 68,500 59,500 92,900
Xsara family 76,000 119,200 183,500
C4 family 383,400 437,900 262,400
Xantia 14,100 10,400 11,300
C5 87,900 50,900 73,200
C6 2,800 7,600 7,100
C8 8,800 12,700 20,300
C-Crosser 12,300 6,600 –
Jumpy 39,500 38,700 33,800
C15 – – 1,300
Berlingo 162,400 187,700 194,600
Jumper 54,000 58,600 44,800
Nemo 30,600 400 –
TOTAL 1,356,300 1,461,300 1,406,100
of which diesel-powered versions 788,900 835,600 759,200
of which passenger cars 1,132,400 1,245,200 1,210,900
of which light commercial vehicles 223,900 216,100 195,200

TOTAL PSA Peugeot Citroën 3,260,400 3,428,400 3,365,900

of which diesel-powered versions 1,666,800 1,787,200 1,673,600

of which passenger cars 2,803,900 2,993,200 2,970,300
of which light commercial vehicles 456,500 435,200 395,600
86 / OUR PERFORMANCE > Product indicators

Product indicators
Peugeot (2008)
Fuel Displacement Horsepower Consumption (l /100km) CO2 Noise
CC kW City Highway Combined gram per km dB(a)
Peugeot 107
1.0 BVM P 998 50 5.5 3.9 4.5 106 70.0
1.4 HDi D 1,398 40 5.3 3.4 4.1 109 71.2
Peugeot 1007
1.4 BVM P 1,360 54 8.6 5.2 6.5 153 73.2
1.4 HDi D 1,398 50 5.6 3.9 4.5 120 73.7
Peugeot 206 hatchback
1.4 P 1,360 55 8.8 5.0 6.4 152 73.3
1.4 HDi D 1,398 50 5.4 3.7 4.3 112 70.9
Peugeot 207 hatchback
1.4 P 1,360 55 8.4 5.0 6.3 150 73.6
1.4 VTi P 1,397 70 7.9 4.8 5.9 140 72.7
1.6 HDi D 1,560 66 5.7 3.7 4.4 117 73.6
Peugeot 308 hatchback
1.4 VTi P 1,397 70 9.0 5.2 6.5 155 73.7
1.6 VTi P 1,598 88 9.3 5.2 6.7 159 73.9
1.6 HDi D 1,560 66 5.8 3.8 4.5 120 73.2
1.6 HDi FAP D 1,560 80 5.9 3.8 4.5 120 73.8
Peugeot 407 saloon
2.0 P 1,997 103 11.0 6.4 8.6 192 73.4
1.6 HDi FAP D 1,560 80 6.8 4.4 5.3 140 73.5
2.0 HDi FAP D 1,997 100 7.5 4.7 5.7 150 74.3
Peugeot 407 Coupé
2.2 BVM P 2,230 120 13.1 6.9 9.2 219 74.0
2.0 HDi FAP D 1,997 100 7.8 4.8 5.9 156 73.7
2.7 HDi BVA D 2,720 150 11.9 6.5 8.5 225 71.6
Peugeot 4007
2.2 HDi FAP D 2,179 115 9.5 5.9 7.2 191 74.9
Peugeot 607
3.0 P 2,946 155 14.9 7.5 10.2 242 73.2
2.0 HDi BVM FAP D 1,997 100 8.1 5.0 6.1 160 74.6
2.7 HDi BVA FAP D 2,720 150 11.6 6.6 8.4 223 72.0
Peugeot 807
2.0 BVM P 1,997 103 12.0 7.3 9.0 213 72.4
2.0 HDi D 1,997 88 8.8 5.8 6.9 182 74.6
2.0 HDi FAP D 1,997 100 9.0 6.0 7.1 188 73.3
Partner Tepee
1.6 P 1,587 66 10.8 6.8 8.2 195 73.3
1.6 HDi D 1,560 66 7.0 5.0 5.7 150 74.2
Expert Tepee
2.0 P 1,997 103 13.3 8.2 10.1 241 73.3
1.6 HDi D 1,560 66 8.4 6.6 7.2 191 74.4

Bold: the best-selling vehicle in its category in France (petrol and diesel version).
Light: vehicle emitting the least CO2 in its category (petrol and diesel version).

Models/versions launched in the 1st half 2009

Peugeot 3008
1.6 VTi P 1,598 88 9.8 5.6 7.1 165 73.3
1.6 HDi FAP BMP6 D 1,560 80 5.9 4.3 4.9 130 72.9
Bipper Tepee
1.4 P 1,360 54 8.8 5.9 6.9 165 70.0
1.4 HDi BVM D 1,398 50 5.7 3.8 4.5 119 71.0
Peugeot 407 saloon
1.6 HDi FAP D 1,560 80 6.4 4.1 4.9 129 73.5

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 87

Fuel consumption, CO2 emissions and noise emissions

Citroën (2008)
Fuel Displacement Horsepower Consumption (l /100km) CO2 Noise
CC kW City Highway Combined gram per km dB(a)
Citroën C1
1.0 P 998 50 5.5 3.9 4.5 106 70.0
HDi 55 D 1,398 40 5.3 3.4 4.1 109 71.2
Citroën C2
1.4 SensoDrive Stop & Start P 1,360 65 6.8 4.8 5.6 130 70.5
1.1 P 1,124 44 7.5 4.8 5.8 138 72.9
HDi 70 D 1,398 50 5.3 3.7 4.3 113 73.8
HDi 70 SensoDrive D 1,398 50 4.9 3.8 4.2 111 72.7
Citroën C3
1.4 16v Stop & Start P 1,360 65 6.9 4.9 5.7 135 70.8
1.4 P 1,360 54 8.2 4.9 6.1 145 73.8
HDi 70 D 1,398 50 5.3 3.8 4.4 115 72.9
Hdi 70 SensoDrive D 1,398 50 4.9 3.9 4.3 113 71.3
Citroën Berlingo
1.6 16v P 1,587 66 10.8 6.8 8.2 195 73.3
HDi 110 FAP D 1,560 80 6.8 4.9 5.6 147 73.5
HDi 92 D 1,560 66 7.0 5.0 5.7 150 74.2
Citroën Xsara Picasso
1.6 16v P 1,587 80 9.5 6.0 7.3 172 71.9
HDi 92 D 1,560 66 6.4 4.2 5.0 130 73.4
Citroën C4
1.4 16v P 1,360 65 8.7 5.2 6.4 153 71.6
VTi 120 P 1,598 88 9.3 5.2 6.7 159 74.0
HDi 92 D 1,560 66 5.7 3.7 4.4 117 74.1
Citroën C4 Picasso
THP 150 P 1,598 110 9.9 5.8 7.3 173 73.0
VTi 120 P 1,598 88 10.0 5.9 7.4 174 73.8
HDi 110 FAP D 1,560 80 6.9 4.7 5.5 145 72.2
HDi 110 FAP Airdream BMP6 D 1,560 80 6.4 4.7 5.3 140 70.1
Citroën C5
1.8 16v P 1,749 92 10.8 6.2 7.9 188 72.1
2.0 16v P 1,997 103 12.0 6.3 8.4 198 72.8
HDi 140 FAP D 1,997 103 7.5 4.8 5.8 153 71.1
HDi 110 FAP Airdream D 1,560 80 6.6 4.6 5.3 140 71.7
Citroën C6
3.0 V6 P 2,946 155 16.3 8.2 11.2 266 72.2
V6 HDi 208 FAP D 2,720 150 12.0 6.8 8.7 230 70.2
HDi 173 FAP D 2,179 125 8.7 5.4 6.6 175 75.0
Citroën C8
2.0 16v P 1,997 103 12.0 7.3 9.0 213 72.4
HDi 120 D 1,997 88 8.8 5.8 6.9 182 74.6
Citroën C-Crosser
HDi 160 FAP D 2,179 115 9.5 5.9 7.2 191 74.9

Bold: the best-selling vehicle in its category in France (petrol and diesel version).
Light: vehicle emitting the least CO2 in its category (petrol and diesel version).

Models/versions launched in the 1st half 2009

Citroën C3 Picasso
VTi 95 P 1,397 70 9.1 5.5 6.8 157 74.0
HDi 90 D 1,560 66 6.0 4.0 4.7 125 74.9
Citroën Nemo Combi
1.4 P 1,360 54 8.8 5.9 7.0 165 70.0
HDi 70 BVM D 1,398 50 5.7 3.8 4.5 119 71.0

A more detailed presentation of the product indicators may be found in the “Products” chapter of the 2008 Sustainable Development Performance Indicators supplement.
88 / OUR PERFORMANCE > Production Plant Environmental Indicators

Production Plant
Environmental Indicators
Asnières, Aulnay, Buenos Aires, Caen, Charleville, Hérimoncourt, La Garenne, Madrid,
List of ISO 14001-certified production facilities Mangualde, Metz, Mulhouse, Poissy, Porto Real, Rennes, Saint-Ouen, Sept-Fons,
Sochaux, Trémery, Trnava, Valenciennes, Vesoul, Vigo.

List of ISO 14001-certified production joint ventures Française de Mécanique, Sevelnord, Wuhan, Xiangfan, Sevelsud, Kolín.

Units 2008 2007 2006

Direct consumption of primary energy (MWh ncv) TOTAL 2,768,132 2,885,961 2,915,167
of which PCA 2,457,305 2,591,246 2,794,328

Direct consumption of secondary energy (MWh) TOTAL 3,157,242 3,355,813 3,241,687

of which PCA 2,901,511 3,115,472 3,157,849

Direct greenhouse gas emissions (tonnes CO2 eq.) TOTAL 596,999 624,495 636,878
of which PCA 529,425 559,601 610,285
Indirect CO2 emissions (tonnes) PCA 366,434

Direct SO2 emissions (tonnes) TOTAL 43.6 121.9 313.3

of which PCA 26.6 101.7 304.8

Direct NO2 emissions (tonnes) TOTAL 583.9 628.4 666.0

of which PCA 510.5 556.7 636.4

Paintshop VOC releases VOC (tonnes) PCA 9,505 11,136 12,128

Ratio/vehicle PCA 4.13 4.39 4.88

Annual water withdrawal cu.m TOTAL 12,597,953 13,353,961 14,662,685

of which PCA 11,592,727 12,306,742 14,396,598

Gross effluent discharge, ex-works COD (kg / year) PCA 2,351,932 2,459,755 2,926,580
BOD5 (kg / year) PCA 705,537 747,668 1,085,337
SM (kg / year) PCA 661,771 663,813 587,958

Weight of waste (excluding metal waste) (tonnes) TOTAL 397,712 431,481 395,879

of which PCA 358,660 390,954 376,483

Scope: Total = PCA, AP/AC, PCO, PMTC, Gefco
PCA = Manufacturing operations
of the Automobile Division
Definitions: SO2 = Sulphur dioxide
NO2 = Nitrogen dioxide
VOC = Volatile organic compounds
COD = Chemical oxygen demand
BOD5 = Biochemical oxygen demand after 5 days
SM = Suspended mater

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 89

Energy consumption Direct greenhouse gas emissions

(Manufacturing operations of the Automobile Division*) (Manufacturing operations of the Automobile Division*)
– –
Energy consumption Ratio Greenhouse gas emissions Ratio
(in MWh ncv) (MWh ncv/vehicle) (in t CO2 eq.) (in kg CO2 eq./vehicle)

7,000,000 4 700,000 500

6,000,000 600,000 405

3.08 400
3
5,000,000 500,000
2.39 2.33
2.25 2.10 300
4,000,000 400,000 245
2 221 230
3,000,000 300,000
200

2,000,000 200,000
1
100
1,000,000 100,000

0 0 0 0
1995 2006 2007 2008 2010 1995 2006 2007 2008
Objective
Heavy fuel oil + HHO Steam Greenhouse gases Ratio (in kg CO2 eq./vehicle)
NG + LPG Electricity
Greenhouse gases include carbon dioxide (CO2),
Coal + Coke Ratio (in MWh ncv/vehicle)
nitrous oxide (N2O) and methane (CH4).
HHO = home heating oil; NG = natural gas; LPG = liquefied petroleum gas

Total water withdrawal by source Total weight of waste by type

(Manufacturing operations of the Automobile Division*) (Manufacturing operations of the Automobile Division*,
– excluding foudry waste and metal waste, nearly 100%
of which is recycled)
–
Water used Ratio Weight of waste Ratio
(in cu.m) (in cu.m/vehicle) (in tonnes) (in kg/vehicle)

25,000,000 15 200,000 100

14.16 94
180,000 90

20,000,000 160,000 73 80
68 69
140,000 70
10
15,000,000 120,000 60
100,000 50
5.79
10,000,000 4.85 5.03 80,000 40
5 30
60,000
5,000,000 40,000 20
20,000 10
0 0 0 0
1995 2006 2007 2008 1995 2006 2007 2008

City water Underground water Non-hazardous industrial waste Ratio (in kg/vehicle)
Surface water Ratio (in cu.m/vehicle) Sludge + effluent + other
* PCA

A more detailed presentation of the production plant environmental indicators may be found in the “Environment” chapter of the 2008 Sustainable Development Performance
Indicators supplement.
90 / OUR PERFORMANCE > Employee Relations Indicators

Employee Relations
Indicators
Number of employees under permanent or fixed-term contracts by division, 2002-2008 (Consolidated Group, at 31 December 2008)
–
2002 2003 2004 2005 2006 2007 2008
Automobile Division (1) 133,880 135,180 139,480 140,050 140,000 134,345 129,890
Banque PSA Finance 2,160 2,150 2,360 2,370 2,365 2,330 2,390
Gefco 8,050 8,360 8,840 9,370 9,900 9,980 10,060
Faurecia 52,230 51,860 54,430 54,960 57,810 59,765 58,140
Other businesses (2) 2,280 2,360 2,140 1,750 1,675 1,430 1,220
Total 198,600 199,910 207,250 208,500 211,750 207,850 201,700

(1) Automobile manufacturing operations and Peugeot S.A. holding company.

(2) SCEMM, PMTC France, PMTC Germany and PMTC Italy.

Top ten nationalities other than French Employees under permanent or fixed-term
represented in the Group (Consolidated Group, contracts by age group and gender
at 31 December 2008 – percentage of total workforce) (Consolidated Group, at 31 December 2008)
– –
North American 1.9% Mexican 1.6%
50,000 47,695
Slovak 2.3% 39,470
40,000 37,060
British 2.4% Spanish 11.1% 31,795
30,000

Portuguese 3.0% 20,000

German 5.6% 14,340
10,585 9,910 8,040
Polish 3.1% 10,000
2,125 680
0
Argentine 3.2% Brazilian 3.4% 50,000 < 20 20/29 47,695
30/39 40/49 > 50
Men Women 39,470
40,000 37,060
31,795
30,000

20,000
14,340
Number of women employees under permanent or fixed-term contracts (Consolidated
10,585
Group, at 31 December 2008)
9,910 8,040
– 10,000
2,125 680
2002 2004 2006
0 2008 % increase 2002-2008
Operators 16,235 19,105 21,065 < 20 21,635
20/29 30/39 40/49 > 50
+33.3
ETAM 14,420 16,655 16,175 Men 15,610 Women +8.2
Managers 4,245 5,325 6,320 6,310 +48.7
Total 34,900 41,085 43,560 43,555 +24.8

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 / 91

Safety performance in 2008 (Manufacturing and sales units, Consolidated Group, excluding Gefco and Faurecia, at 31 December 2008)
–
Sales units Manufacturing units
Frequency rate Severity rate Frequency rate Severity rate
European Union 4.32 0.17 3.46 0.33
Rest of Europe 1.55 0.02 – –
Africa 0.00 0.00 – –
South America 2.24 0.01 0.76 0.03
Asia 0.00 0.00 – –
Total 4.07 0.15 3.21 0.3

Other employee relations indicators (Consolidated Group, excluding Faurecia, at 31 December 2008)
–
Units 2008 2007 2006

Total payroll costs (in thousands of euros) 6,539,331 6,893,925 6,779,672

Employees under fixed-term contracts (average annual number) 10,760 10,775 9,890

Employees hired under permanent contracts 8,840 8,445 10,120

Operators 4,315 4,765 5,290
ETAM 3,655 3,155 3,680
Managers 870 525 1,150

Separation rates (% of total workforce) 8.3 10.2 4.9

Improvements in working conditions*

“Light” workstations (as a %, as rated by the Meteo method) 49 45 40
“Medium” workstations 40 42 45
“Heavy” workstations 11 13 15

Disabled employees 6,315 6,870 6,605

Operators (% of disabled employees) 82 83 N/A
ETAM 15 14 N/A
Managers 3 3 N/A

Training
Hours of training (in thousands of hours) 2,935 3,612 3,835

Work/life balance
Part-time employees 9,065 9,120 7,800
Maternity leaves 1,645 1,615 N/A
Paternity leaves 4,340 3,990 N/A
Parental leaves 1,010 885 N/A

* Manufacturing operations of the Automobile Division.

ETAM: Administrative employees, technicians, supervisors.

A more detailed presentation of the employee relations indicators may be found in the “Social and Society” chapter of the 2008 Sustainable Development Performance
Indicators supplement.
92 / OUR PERFORMANCE > Production Facilities / Methodology

Production Facilities
Assembly plants
Models produced as of 31 December 2008 2008 production
Aulnay (France) C2, C3 248,500
Buenos Aires (Argentina) 206, 207, 307, 307 Sedan, C4, C4 Sedan, Berlingo, Partner 132,100
Bursa* (Turkey) Bipper, Nemo 62,600
Kolín* (Czech Republic) C1, 107 216,200
Madrid (Spain) 207, 207 cc, C3 Pluriel 114,700
Mangualde (Portugal) Berlingo, Partner 61,400
Mizushima, later Okazaki* (Japan) 4007, C-Crosser 33,200
Mulhouse (France) 206, 308, C4 276,000
Poissy (France) 1007, 207, 207 SW 198,400
Porto Real (Brazil) 206, 207, C3, Xsara Picasso 128,200
Rennes (France) C5, C5 Tourer, C6, 407, 407 SW, 407 Coupé, 407 break, Xsara Picasso 229,900
Sevelnord* (France) 807, C8, Expert, Jumpy 106,900
Sevelsud* (Italy) Boxer, Jumper 110,600
Sochaux (France) 307, 307 break, 307 SW, 308 cc, 308 SW, 308 break, 607, 3008 287,800
Trnava (Slovakia) 207, C3 Picasso 185,900
Vigo (Spain) Xsara Picasso, Grand C4 Picasso, C4 Picasso, Berlingo, Partner 439,600
Wuhan* (China) 206, 307 Sedan, C2 China, C-Quatre, C-Triomphe, ZX, C-Élysée, Xsara Picasso China 172,600
* Joint or cooperative ventures.

Mechanical components plants and foundries

Asnières (France) Hydraulic systems
Caen (France) Wheels, axles, suspension systems, transmissions
Charleville (France) Aluminium and iron castings
Douvrin*, Française de Mécanique (France) Petrol and diesel engines
Hérimoncourt (France) Engines and gearboxes
Jeppener (Argentina) HDi diesel engines; wheels, axles, suspension systems
Metz (France) Gearboxes
Mulhouse Mechanical Components Plant (France) Wheels, axles, suspension systems
Mulhouse Metallurgical Plant (France) Aluminium pressure castings, forged steel components and tooling
Porto Real (Brazil) Flex-fuel and gasoline engines
Saint-Ouen (France) Stampings, body in white
Sept-Fons (France) Iron castings
Sochaux Mechanical Components Plant (France) Shock absorbers, wheels, axles, suspension systems
Trémery (France) Petrol and diesel engines
Valenciennes (France) Gearboxes
Xiangfan* (China) Petrol engines; gearboxes; wheels, axles, suspension systems
* Joint or cooperative ventures.

Methodology Note 1: Scope and boundary

This report comes with the 2008 Sustainable Development Performance
Indicators supplement, which covers the economic, environmental,
employee relations, social and governance aspects of the PSA Peugeot
Citroën Group’s sustainable development performance in 2008.
Additional information about the Group’s corporate responsibilities, the
impact of its operations and the programmes undertaken to address
these issues may be found on the sustainable development website,
www.sustainability.psa-peugeot-citroen.com. Taken together, these
publications make up PSA Peugeot Citroën’s Sustainable Development
Report for 2008.
For the third straight year, the report follows the third generation (G3)
Sustainability Reporting Guidelines issued by the Global Reporting
Initiative in October 2006. According to the criteria recommended in
the “2008 Guidelines, Application Levels”, the Group’s own assessment
of this report based on the GRI G3 guidelines results in a self-declared
B+ application level.
The scope of reporting and consolidation methods for the indicators
are described in the 2008 Sustainable Development Performance
Indicators supplement.
Note 2: Independent assurance
As PSA Peugeot Citroën’s Statutory Auditors, PricewaterhouseCoopers
has expressed moderate assurance on the Group’s procedures for
compiling:
• Environmental data from its plants, offices and other sites.
• Social data from the entire Group, except Faurecia.
Their review of the processes used to collect and compile the report’s
employee relations and environmental data has been published in its
entirety at the end of the 2008 Sustainable Development Performance
Indicators supplement.
Note 3: Contact
For more information, particularly concerning internal reporting ­processes,
please write to the Sustainable Development Department, PSA ­Peugeot
Citroën, 75, avenue de la Grande-Armée, 75116 Paris, France or by
e-mail at contact.sustainability@mpsa.com

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 2
largest
nd
No. 1
manufacturer
3,260,400
vehicles
carmaker of light commercial
vehicles in Europe, with
sold worldwide
in Europe, with
13.8% 19.9%
of the market
of the market

CONTENTS
2_ Message from the Chairman of the Supervisory Board
4_ The Supervisory Board
6_ Interview with the Chairman of the Managing Board
8_ Executive Management
10_ Investor Relations
12_ Key Figures
14 - 19_ The Year’s Highlights

OUR AMBITION
22_ Fundamentals Driving Our Ambition
24 - 27_ Sustainable Development Approach

OUR BUSINESS
30 - 33_ Peugeot and Citroën
34_ 2008 Performance
36 - 40_ International Expansion
Available on the CD-Rom
41 - 43_ Other Businesses • The 2008 Sustainable Development Performance Indicators supplement
• The 2008 Registration Document, filed with the Autorité des Marchés Financiers on 24 April 2009,
OUR COMMITMENT is available upon request from: Investor Relations – 75, avenue de la Grande-Armée – 75116 Paris, France
46_ Translating Needs into Products Phone: 0810 424 091 (France only, charged at local rate) – Email: communication.financiere@psa.fr
48 - 53_ Vehicles and the Environment • Notice of Meeting for the Annual Shareholders Meeting
54 - 57_ Manufacturing and the Environment
58 - 67_ Social Responsibility
68 - 75_ Corporate Citizenship

Photos: Front cover: C-A. D’Autichamp – P. Legros – P. Ollive • p. 2: M. Moore • p. 5: M. Moore – N. Zwickel • p. 7: M. Moore • p. 9: M. Moore – P. Legros – S. Meyer – N. Zwickel
OUR PERFORMANCE – Corporate Communications, China – Corporate Communications, Brazil – D. Pizzalla • p. 14: S. Muratet – J. Lejeune – Corporate Communications, China • p. 15: N. Zwickel –
78 - 83_ Financial Indicators S. Muratet – G. Ricciardi • p. 16: M. Moore – C-A. d’Autichamp – S. Meyer • p. 17: BMW – S. Meyer – J. Stehlin – Peugeot Motorsports • p. 18: J. Lejeune – P. Legros – M. Suning
• p. 19: Citroën Motorsports – Boyko – L. Nivalle • p. 20/21: P. Sautelet • p. 22: P. Legros • p. 23: P. Sautelet • p. 24: S. Meyer – S. Muratet – N. Zwickel • p. 25: IVM • p. 28:
84 - 87_ Product Indicators J. Lejeune • p. 29: Corporate Communications, Citroën • p. 31: P. Sautelet – P. Legros • p. 32: Corporate Communications, Citroën • p. 33: J. Lejeune – Corporate Communications,
88_ Production Plant Environmental Indicators Citroën • p. 35: S. Foulon • p. 36: J. Lopeteguy • p. 37: G. Ricciardi • p. 38: M. Suning • p. 39: L. Can-Yun – Corporate Communications, China • p. 40: F. Spilka • p. 41: Gefco •
90_ Employee Relations Indicators p. 42: P. Legros • p. 43: Faurecia • p. 44/45: L. Nivalle • p. 49: F. Pitchal – P. Legros • p. 50: J. Lejeune • p. 51: A. Bernier • p. 53: M. Ech Charqi – S. Meyer • p. 56: S. Meyer •
p. 57: C. Pihery • p. 58: D. Pizzalla • p. 59: P. Legros • p. 60: N. Zwickel • p. 61: Corporate Communications, Trnava • p. 62: P. Legros • p. 63: J. Lejeune • p. 64: S. Meyer • p. 65:
92_ Production Facilities / Methodology Corporate Communications, Metz • p. 66: R. Degoul • p. 67: N. Zwickel • p. 68: J. Lejeune • p. 69: J. Stehlin – P. Sautelet • p. 71: D. Pizzalla • p. 72: J. Lejeune • p. 73: J. Stehlin
• p. 75: Corporate Communications, Poissy – J. Stehlin • p. 76: A. Bernier • p. 77: P. Sautelet • Back cover: C-A. D’Autichamp – P. Legros – S. Foulon.

Design and writing: PSA Peugeot Citroën Corporate Communications.

Creation, production and printing:

3,000 copies of this Sustainable Development and Annual Report have been printed on FSCTM-certified Creator Silk paper, made exclusively with
Indicates PSA Peugeot Citroën’s 10 sustainable development objectives for 2008-2011. fibres from responsibly managed forests. Vegetable-based inks made from renewable raw materials were used. The printer, which has earned both
FCBA-COC-000057 Imprim’Vert and FSCTM certification, has committed to taking continuous, tangible action to reduce harmful emissions, while saving natural resources.

PSA PEUGEOT CITROËN / 2008 Sustainable Development and Annual Report

 COVER PHOTOS

2008 Sustainable Development and Annual Report

COVER PHOTO EXPLANATION
Interior of the Milling a component of the
Citroën Hypnos Citroën Grand C4 Picasso
concept car mock-up

Peugeot Boxer Peugeot 207

taillight front wing

Psa peugeot citroën

Incorporated in France with issued capital of e234,048,798

Governed by a Managing Board and a Supervisory Board
Registered Office: 75, avenue de la Grande-Armée - 75116 Paris, France

2008
R.C.S. Paris B 552 100 554 – Siret 55 2 100 554 00021
Phone: + 33 (0)1 40 66 55 11 – Fax: + 33 (0)1 40 66 54 14
www.psa-peugeot-citroen.com – www.sustainability.psa-peugeot-citroen.com
Sustainable Development
and Annual Report