Peugeot’s CEO has focused on the brand’s pricing image

The chief executive officer of Peugeot, Maxime Picat, is tasked with a pivotal role in the parent PSA Peugeot Citroen’s revival plan, being the leader of the carmaker’s biggest unit.

PSA Peugeot Citroen chief executive officer Carlos Tavares has been hard at work with a turnaround plan that has yielded already its first results – the overall automotive division returned to profit during the first quarter of the year. The brand strategy has also been made clear internally – Peugeot needs to position itself as an upper-scale mass-manufacturer to compete with Germany’s Volkswagen, the Citroen brand will play the affordable role and the newly independent DS heads the luxury game. So the Peugeot brand was tasked, with models such as the new 308, to help PSA return to profit by lifting its retail pricing position, specifically in Europe where the clear target is Volkswagen’s namesake brand. The strategy was to direct customers to the top variants of best-selling models such as the 2008 crossover and 308 compact and the company wants to close the specification-adjusted net transaction price with the VW Golf in a s little as one year. Now, the pricing gap between Peugeot and VW has gone down from 6.5 percent in 2013 to 5.3 percent last year, while the closest following rival is at more than 10 percent.

The company’s upcoming all-new Peugeot most likely will be the new generation 3008, which will have to fend off new competitors, such as Renault’s Kadjar. So, the company is going from a pure crossover to a SUV-centric model for the upcoming 3008, while the current generation model being launched in China is already heading that way.

Via Automotive News Europe