In an interview with the colleagues from Automotive News Europe, Peugeot’s CEO Maxime Picat talked about the plan of the French company for raising profitability without adding a premium sub-brand line-up like Citroen.
Peugeot will increase earnings from its lineup by introducing premium versions to each model line instead of investing in a fabled premium sub-brand line-up. The brand’s CEO also has big confidence in the new 308, which he says has better residual value than the compact segment’s leader – VW Golf.
The 308 has moved upscale but, as it replaces the 307,the base price remained the same and Picat says higher content and higher quality can yield better pricing or lower incentives. This should be especially true for fleet sales, where they have indications that the 308 is even better than the VW Golf on residuals. He also says they found solutions to trim down production expenses.
Asked about the pricing line for the entire PSA, Picat said: “In the past we had two brands competing for the same customers. Our plan is to move upmarket but in different ways: Citroen with a specific line, the DS, while Peugeot will move upmarket by improving the mix of each model.”
Although moving up-market, Peugeot also has an affordable entry-level sedan, the 301, which Picat says that besides its current markets, North Africa, Turkey, Eastern Europe and Russia it will also be introduced in Mexico, Chile and Argentina. Their plan is to export about 90,000 units a year from Vigo, Spain. Also, the model is produced in China for the local market, so soon enough the 301 could account for 150,000 units a year worldwide.
Via Automotive News Europe