By Daniel Hunter

PSA Peugeot Citroen has unveiled plans aimed at ‘a turnaround in 2014’.

Peugeot plans to cut the number of models it manufactures and sells in an attempt to reduce the competition between Peugeot and Citroen. It said the models across both brands are “cannibalizing (sic) each other”.

Cars such as the Citroen C1 and Peugeot 107 are essentially the same vehicle with a few minor design differences.

Peugeot will now look to position itself as the ‘higher end’ brand, with Citroen as the ‘value’ brand. It is also looking to establish the DS models as a premium brand in its own right.

By 2022, Peugeot aims to have 26 models, compared to the 45 it has today.

The manufacturer also plans to pull out of Russia and Latin America. It said the markets are not profitable for the company.

The turnaround plans come after it reported €7.2bn ($10bn; £5.9bn in the past two years. Peugeot’s shares fell by 4.46% following the news.

“We are going to focus the creative power of our teams on a more limited number of products that people want to buy,” said new chief executive Carlos Tavares.

“If you have less cars you will do a better job, and the cars will be more competitive. By doing this, you will have more attractive products.”

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