Peugeot will be competing directly at the Volkswagen marque. According to the brand's CEO, Carlos Tavares, they want to transform Peugeot from a general mass-market brand into a more upscale volume automaker as expensive as VW models.

Peugeot’s lineup will be reduced to 16 models by 2018 from 25 now and to 13 models by 2022. Tavares did not elaborate on how the lineups of the two brands will look in the future.

Peugeot will instead focus on the B-, C- and D-segments, with body styles including hatchbacks, sedans and wagons. The brand will also offer crossovers in the C- and D-segments based on the new MP2 modular platform.