PSA apparently phases out A-segment

According to the news agency Reuters, PSA has made the decision to discontinue the A-segment. They reported that this was confirmed by three representatives of the manufacturer, who were not named. A person close to PSA is said to have stated:

“PSA is exiting both the business and production in the A-segment."

One reason for this decision is that manufacturers have lost the most money in this segment in Europe. The reasons are clear: the quantities are comparatively low and the margins extremely weak. Only in Southern Europe do the minis achieve comparatively acceptable quantities in the segment, which is occupied by PSA (Fiat 500 and Panda), the VW Group (with VW Up!, Seat Mii electric and Skoda Citigo iV), Daimler (Smart), Renault (Twingo), and Hyundai (i10) as well as Kia (Picanto). Additionally, Toyota with the Aygo and Mitsubishi with the Space Star are also in this segment.

The Peugeot 108 and Citroën C1 in the Stellantis group will likely be replaced by Fiat 500 and Panda. Furthermore, the portfolio from France will be expanded downwards to include the smaller vehicle class L6e and/or L7e. The first representative is the purely electric Citroën Ami. The decision by PSA has not been officially confirmed, but neither has it been denied.

Another supporting fact is that PSA decided in 2019 to withdraw from the joint venture with Toyota in the Czech Republic, which builds these models, the Peugeot 108, the Citroën C1, and the Toyota Aygo. A spokesperson for the group told Automobilwoche:

“Groupe PSA fundamentally strives for the best offer to both meet customer expectations in the A-segment and achieve CO2 goals in Europe. This means considering fresh and disruptive ideas.”

And specifically, the new Citroën Ami was mentioned as the “first strong response." Further offers in the light vehicle segment could follow in the future. It was cryptically explained that other offers would be available in the future, providing clean, safe, and affordable mobility for all.

What does that mean?

The ultra-compact A-segment is only a massive volume producer on the Indian subcontinent. In Europe, it is rather “nice to have” but with weak margins and, in total, rather moderate volumes. Thus, it is not surprising that almost all manufacturers consistently question and review this segment. For the new giant “Stellantis,” discontinuing the 108 and C1 makes sense: both models are not market leaders in the segment across Europe, and successors need to be expensive to electrify or even cleaner. Therefore, they leave it to Fiat and prefer to develop even smaller and lighter mobility solutions. A comprehensible decision.