«Out of anger, customers are probably at Toyota or Renault»: Peugeot's new CEO admits he mishandled the PureTech engine crisis

It's a rare admission in the automotive industry. On March 24, 2026, at a much-anticipated press conference, Alain Favey, the new CEO of Peugeot, the Group's marque Stellantis, Since February 2025, our new CEO has been speaking out on a subject that has been close to the brand's heart for several years: the PureTech engine.

And for once, the speech did not seek to minimize the past.

A lucid assessment of a poorly managed crisis

Alain Favey didn't beat about the bush with journalists. Yes, Peugeot still has a negative image linked to the reliability of its PureTech engines, and yes, this no longer corresponds to today's reality.

He insists that the new engines are now among the most efficient and reliable on the market. However, the perception remains permanently tainted. And for good reason: the brand implicitly acknowledges a major error... not necessarily technical, but in crisis management.

«There's something we did back then that we didn't do well,» he admits. It's a powerful statement, clearly aimed at customer relations. Peugeot admits to not having been close enough or responsive enough to the problems encountered by some owners.

A flight of customers to the competition

One of the most striking passages of the conference was Alain Favey's direct reference to the commercial consequences of the crisis. According to him, some disappointed customers have already left the brand. And not necessarily temporarily.

«It's probably already been with Toyota or Renault for a long time,» he explains, referring to consumers who left «out of anger». It's a stark but realistic observation, highlighting the lasting impact of a poorly managed reliability problem. What's more, the CEO acknowledges that it's difficult to blame these customers. Their discontent is considered legitimate, and Peugeot now seems intent on adopting a more humble stance.

Peugeot bets on a new beginning

Faced with this situation, the strategy is clear: turn the page without denying the past. For several years now, the brand has been deploying a series of actions to win back trust. Extended warranties, tighter controls, customer support... everything is done to demonstrate a change in attitude.

But Alain Favey's real message lies elsewhere: convincing people that the new models have nothing in common with those of the past. «We've understood the problems and dealt with them,» he assures us, referring to both technical aspects and customer relations. Peugeot now promises total reliability on its latest vehicles.

A recovery that will take time

Despite these assurances, the CEO remains lucid. No, customers won't come back overnight. Trust, once lost, cannot be recovered in a matter of months. «It's a process that will probably take some time,» he admits.

Peugeot therefore appears to be engaged in a long-term, in-depth effort to rebuild its image. A task all the more complex in a market where the competition - notably Japanese and European - already enjoys a solid reputation for reliability.

Full transcript of the press conference

Now we're launching a new engine which, yes, is obviously one of the most efficient and reliable engines on the market - I'm sure you're convinced by now.

And despite this, we continue to suffer from our reputation as an unreliable engine and the negative image that dates back to this period. So there's something we did back then that we didn't do very well. And if there are customers who, at the time, had problems with their engine and to whom we didn't respond in a close enough and reactive enough way, obviously I understand that they're unhappy and that they're annoyed with us in some way.

Now, what exactly did we do? I don't know what exactly we did wrong back then in the way we dealt with the problem. All I can tell you is that over the last few years, we've certainly put in place a whole arsenal of actions, warranties, check-plus and special coverages that enable us to stand by our customers. What's more, all the new vehicles we sell are totally reliable. He's not going to forgive us overnight. He's going to continue to be unhappy, and maybe he's already been with Toyota or Renault or I don't know who, if only out of anger. And I can't blame him, I understand that.

All we can say today, as the people in charge of this brand, is: listen, don't dwell on the problems of the past. We've understood and dealt with the problems of the past, both in terms of our attitude and the technical content of our models. And today, we can guarantee that the new models have no problems whatsoever, and that you'll have at your side a brand and an attitude that are totally different from what was the case a few years ago.

That's the only thing we can say. After that, will people forgive us overnight? No. But it's a process that will probably take some time, and we're ready for it.

Alain Favey - Peugeot CEO