When you think of the basic rules of business, it is a fact that businesses need to be realistic in their assumptions and action. If a business tends to be too optimistic, for instance, there is a high chance of it losing its way, considering how it will be prone to exuberant risk-taking. The management of a business, therefore, needs to put on a realistic lens, regardless of whether they are making a business decision or speaking of business related matters, in general.
The CEO of Peugeot, however, appears to be completely unaware of this basic quality of successful CEOs, owing to how he has been found to be a bit too optimistic in his latest remarks. The biggest shock came about in his statement about making the transition from diesel powered engines to the electric models. According to Jean-Philippe Imparato, the CEO of Peugeot, the company will make two versions of the same vehicle; one will be powered by diesel while the other will be electric. It would then be up to the customers to decide which model it is that they want, depending upon the relevant laws and preferences.
What he comfortably chose to ignore, however, was the cost that the company would have to bear in pulling off all of these shenanigans. The statement appears to be even more ridiculous when you consider how the European market for cars has been flattening over the past few years. Taking all of this into perspective, it appears to be nothing short of foolish for the CEO of Peugeot to expect such a strategy to work in the shrinking market. The basic purpose of a company is to make profits, but going by what the CEO wishes to do, Peugeot can expect to find itself running into a predicament soon enough!