Peugeot’s Parent Company PSA Group’s Europe Boss Denis Martin Commits To Frugal Innovation

Article in Auto News Europe reports that Peugeot Citroën Moteurs Group new direction is “frugal innovation,” says Europe boss Denis Martin.

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PSA is Europe’s second largest carmaker after Volkswagen Group but only sells about 3 million vehicles globally, while VW Group’s worldwide volume is more than three times larger. “It’s not a question of size, it’s a question of agility,” Martin told the Automotive News Europe Congress here last week. He described PSA’s new direction as “frugal innovation.”

Said Martin: “We have changed our mindset for r&d and capital expenditure. We will optimize each euro.”

Before CEO Carlos Tavares launched a focus on controlling expenditure PSA was old fashioned with a “no risk spirit,” Martin said. “Parts of PSA still ran on the kind of old-style bureaucracy you find in some traditional companies, with people working in separate silos. It is for this reason that we were in a particularly deep crisis in 2013.”

Author: Venkata Gandikota

Venkata has more than 13 years of technical engineering, research, ideation, strategy and business modeling experience. Based on his experience with the Indian market and realizing also the need for affordable & sustainable solutions for Finland and other European markets, he started The Nordic Frugal Innovation Society in late 2013 with 2 colleagues. By organizing ideation workshops and 2 major conferences involving Cities, Universities, and businesses he started to mainstream the concept in Finland and the Nordics. Gandikota has also written several articles focusing on frugal innovations in the Finnish media. He has also been helping Finnish businesses in India as CEO of Indianeer Consulting and gives guest lectures at JAMK University of Applied Sciences in Jyväskylä. He has a Bachelors in Chemical Engineering from India and a Masters in Environmental Engineering from USA.