The new chief executive of PSA Peugeot Citroen said new models and an improvement in quality would be key to the future of Europe's second-biggest car group after Volkswagen.
Peugeot Citroen reported a steep decline in its 2006 consolidated operating margin to 2 per cent from 3.4 per cent in 2005 today. But the fall was less than analysts had forecast and, combined with ceo Christiaan Streiff's outlook, pushed the company's shares up over 5 per cent.
Mr Streiff said he would unveil a plan for the period to 2010 in May and outline a vision for the period after that in September.
He said there were "no taboos" and an entry to the United States market or a review of the company's alliance policy were among strategic options.
"Priority number one for the next month, the next year, the next decade, is quality," Mr Streiff said at an analyst presentation the day after he was officially appointed by the supervisory board to succeed Jean-Martin Folz.
Peugeot Citroen said group sales had increased in the fourth quarter after declines in the second and third quarters.
The operating margin at its automobile division - stripping out the Banque PSA bank, Gefco transport unit and Faurecia parts subsidiary - fell to 0.6 per cent in 2006 from 2 per cent in 2005.
The average forecast by 22 analysts for consolidated operating margin - or earnings before interest and tax (EBIT) - was 1.7 per cent.