Under the “Back in the Race” plan announced by new chief executive Carlos Tavares., Peugeot will gradually cut the number of models in its range from 45 to 26 by 2020. Affected models have yet to be announced.

Meanwhile the DS line-up will be developed as a fully fledged brand.

The plan will also focus on reducing costs and excess plant capacity and look to to accelerate its expansion in China, in partnership with China’s Dongfeng, in a move to boost sales in other Asian markets.

The company is also looking to boost its business in Europe, Russia and Latin America where it is losing money within the next three years.

The moves are intended to halt PSA’s losses – which amounted to € 7.2bn over the past two years – by 2016 and generate profit by 2018.

‘We are going to focus the creative power of our teams on a more limited number of products that people want to buy,’ said Mr 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.’

The plan comes after a long-awaited rescue deal with the French government and Dongfeng Motors, which have each invested nearly €800m exchange for a 14% stake in the company.