Abstract

PSA Peugeot Citroen (Peugeot) is the second largest passenger car and commercial vehicle manufacturer in Europe. Peugeot makes cars and light commercial vehicles under the Peugeot and Citroen brands. Other products include motorbikes, scooters, and light-armoured vehicles. Peugeot also offers parts transportation and logistics and financial services to dealers and customers. The company faces many risks: hazard, legal, regulatory, foreign exchange, interest rate, credit and liquidity. The case outlines these risks and the mechanisms Peugeot employs to deal with them. MBA students, as part of a business strategy course, will find the case useful in understanding the various approaches to risk management.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

PSA Peugeot Citroen, Risk, Corporate strategy, Hazard risks, Risk management, Financial risks, Foreign exchange risks, Interest rate risk, Liquidity risk, Credit risk, Vehicle manufacturer, Passenger car