ArcelorMittal received the Technical Cost Savings award for its ability to propose cost-saving solutions during PSA’s Best Suppliers Awards ceremony. This follows on from our 2015 award in the Value Creation category. PSA Group held their 12th annual Best Supplier Awards ceremony on 24 May 2016. This year’s awards had a special focus on responsible performance. Carlos Tavares, Chairman of the Managing Board of PSA Group, and Yannick Bézard, Executive Vice-President, Purchasing, honoured 15 suppliers for their commitment and the quality of their response to PSA Group expectations.
The Best Supplier Awards are an opportunity for the PSA Group to reaffirm the strategic importance of supplier relations to its ‘Push to Pass’ profitable growth plan. Carlos Tavares opened the annual ceremony with a reminder that PSA needs to be at the cutting-edge in terms of efficiency and quality to achieve this goal.
ArcelorMittal was recognized as the Best Supplier in the Technical Cost Savings category. This award acknowledges ArcelorMittal’s ability to propose solutions which reduce the cost of delivered standard parts, thereby contributing to the PSA Group's competitiveness.
Awarding the prize to ArcelorMittal, Yannick Bézard said: "ArcelorMittal is involved in all of PSA Group's projects to enhance competitiveness: from innovation to serial production. They are working on weight and cost savings, and finding the best material solution for each vehicle. The best example is the systematic review of the body-in-white which we undertake in the very early stage of all our new projects. This approach returns an average cost saving of minus €5 to minus €8 per car. Another example is ArcelorMittal’s ability to team-up with stamping companies to boost their VA/VE proposals."
VA/VE stands for Value Analysis/Value Engineering. It is a systematic and organized procedural decision making process which allows ArcelorMittal to creatively generate alternative solutions which secure essential functions at the greatest value and the lowest cost.
From left to right: Yannick Bézard, Executive Vice-President, Purchasing - PSA Group; Philippe Aubron, CMO Automotive Europe - ArcelorMittal; Yann Vincent, EVP Manufacturing and Supply Chain - PSA Group
About PSA Group:
In 2015, PSA Group spent a total of €21 billion on materials. More than €16 billion was spent on standard parts and components which account for more than 80% of a vehicle's production cost on average. The Group works with a panel of 1,400 suppliers and encourages local sourcing in all of its facilities. For example, PSA’s French automobile plants source around 50% of their purchases from France and more than 90% from Europe.
With its three world-renowned brands, Peugeot, Citroën, and DS, the PSA Group sold 3 million vehicles worldwide in 2015. As the second-largest carmaker in Europe, the PSA Group recorded sales and revenue of €54 billion in 2015. The Group has confirmed its position as European leader in terms of CO2 emissions, with average fleet emissions of 104.4 grams of CO2/km in 2015. With a fleet of 1.8 million connected vehicles on the road worldwide, the Group is on the cutting edge of innovation in this field, and is expanding its services as a mobility provider. PSA Group is also involved in financing activities (Banque PSA Finance) and automotive equipment (Faurecia).