Trends in the Secondary Sector

There are many type of manufacturing in the UK. The UK share in the output of manufactured goods from all over the world has fallen. The UK now spends more on foreign manufactured goods (imports) than it makes from selling its own manufactured goods (exports). Before 1983 the UK had always sold more goods overseas than it imported. The fall in manufacturing industries is called de-industrialisation. De-industrialisation in the UK meant that jobs in manufacturing have fallen from over 7.6 million people in 1960 to just over 4 million in 1999, most of which were lost in the 1970s.

Although there has been a fall in UK manufacturing, Peugeot has not been largely affected. Last year, the objectives of the PSA Peugeot Citron group were to sell 3 million vehicles. 3,133,000 vehicles were sold, this in an increase of 11.3% compared to the previous year and this increase was achieved in a world market which declined by 1.2%. The PSA Peugeot Citro�n group has seen a sales growth of 50% in the space of four years. Ford dominate the car market (Fig.1) with a market share of 15.6%, Peugeot have a market share of 8.3% which put them third on the car market.

The future objectives for Peugeot are to have sales of 3,250,000 vehicles and an operating margin of 2.8 or 2.9 billion euros, which is 4.8% or 5% of the automotive division operating margin. Commercial Launches during the year are the Citron C3, the Peugeot 206 SW and 307SW, and also the MPVs Peugeot 807 and Ciron C8. The group is giving itself the means to succeed by the industrial investment of 3 billion euros, a research and development investment of nearly 1.5 billion euros, and the recruitment of 9, 000 engineers and managers over 5 years.

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On the 1st of October 2001, the Peugeot 206 was voted the best car in the super mini category in the What car magazine. On the 18th of July 2001 the 206 Coup� Carbriolet was top in the Auto Express New Car Honours. On the 23rd of July 2001 Car magazine ranked the Peugeot 307 number 1 in its latest round up of hatchbacks. The 307 2.0 GLX competed against the Vauxhall Astra 2.2 SRi, Volkswagen Golf 2.0 GTi and the Ford Focus 2.0 Zetec.

On the 31st of June 2001 the new Peugeot 307 came first in a test of family hatchbacks. This review was carried out by Top Gear and the 307 came first out of the Ford Focus and the Honda Civic. Peugeot won three product awards and an award for Green Initiative in the Fleet Excellence Awards 2001 on the 8th of June. The Peugeot 206 won in 2 categories in a vote by the readers of Fleet Management, Fleet Week and Business Car. The 2 categories were Best Petrol Small Car and Best Diesel Small Car. The Peugeot 406 HDi won Best Diesel Upper Medium Car, beating BMW, Audi and VW. The Green Initiative of the Year was awarded for Peugeot's particular filter system, which is a new filter that reduces harmful emissions.

Peugeot sold almost 3,133,000 passenger and commercial cars in 2001. Peugeot has seen a sales increase of almost 50% in the past four years. For this reason Peugeot has had to increase the use of its production capacity. The non-stop production requires a number of plants to remain running in the month of August. It is a method put in place by Peugeot to meet consumer demand more effectively. Claude Barel, head of vehicle programming stated, "By continuing production at a number of plants in August, we are able to increase our output far more quickly and cheaply than if we had to increase production capacity". Non-stop production enables Peugeot to meet more customer orders in a shorter period of time.

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