Peugeot Re: Re: Folz wary on US return

From: Brian J White (brian@bjwhite.net)
Date: Sat 19 Jan 2002 - 20:52:34 EST

  • Next message: jwcool404: "Cost factors of Peug Re-entering a market ??"

    Correction there Hugo...

    Figures are for the USA.

    Volkswagen (alone) sold 355,648 cars in 2001, while Audi (alone) sold
    83,283. That brings Volkswagen Audi Group's total in this country to
    438,931 for the year ending 2001. Volkswagen held steady (they sold a mere
    150 or so more cars in 2001, than 2000) but Audi's sales improved 3.6
    percent over year 2000.

    Accord sales for 2001 were 412,074...so you're right on the 400,000 Accord
    front.

    But for VWAG to sell 438k in this country is quite an accomplishment in my
    opinion. Especially considering that they do not have a high volume sales
    leader like the Accord for Honda, or the Camry for Toyota, or the Taurus
    for Ford.

    Saab's 2001 sales in the USA were also a record for the year if they
    continued on past their Nov 2001 sales...I could find no 2001 totals for Saab.

    Either way, while Volkswagen, Audi, and Saab sell in smaller volumes than
    Honda, Toyota or Ford, they can still sell strongly, and make good profits
    in this country. Something I'm sure Peugeot could do as well. We'll see
    how Alfa's return looks.

    At 01:11 2002-01-20 -0000, hugo_steincamp wrote:
    >
    >
    >If memory serves, VW sell about 200,000 cars a year in this country.
    >That's the sales for their entire line. Which isn't that many, when
    >you consider that Honda sells 400,000 Accords in one year. Hell, I
    >saw four Peugeots in Seattle in one day, which is more than I see
    >here in Arizona in one year. Seattle has a wealth of European cars.
    >
    >
    >
    >- In peugeot-L@y..., Brian J White <brian@b...> wrote:
    >> Shiiiit...VW sales in this country not great? Are you insane?
    >Out of
    >> every 10 cars I see in Seattle, probably 3 or 4 of them are
    >Volkswagens or
    >> Audis.....TONS TONS TONS of them...
    >>
    >> At 21:07 2002-01-19 -0000, hugo_steincamp wrote:
    >> >I agree; the odds of Peugeot returning to these automotively
    >deprived
    >> >shores is less than 50-50. Peugeot will look at VW, Alfa (coming
    >> >back) and Saab sales in the US (which are not great) and decide
    >that
    >> >tackling such a hyper-competitive market that is spread over such
    >a
    >> >huge land mass is not worth it. Then again, I could be
    >completely
    >> >wrong. If they do build a plant in Mexico, that changes
    >everything.
    >> >Mexican production will enable them to compete on pricing, which
    >they
    >> >were unable to do when they were here last time. The cost of a
    >new
    >> >Peugeot in this country was insane. My Peugeot 505 STX was more
    >than
    >> >$25,000 new way back in '87. And it's basically a French Ford
    >Taurus.
    >> >(A very good Taurus.)Without tariffs Peugeot can compete.
    >> >
    >> >After I read Folz's comments, I cleaned my Peugeot doubly hard.
    >> >Better make it last. The chances that I'll be able to replace it
    >with
    >> >a new one are slim.
    >> >
    >> >Hugo
    >> >
    >> >>
    >> >>
    >> >> Thanks for finding that Hugo. It's what I wrote some time ago
    >when
    >> >> that topic came up. So IF a strategic decision is reached by
    >PSA
    >> >to
    >> >> return at that time, it will probably be another 3 to 4 years
    >> >before
    >> >> they can set up all the necessary logistics. This would include
    >> >> deciding on a model mix (I hope they get it right this time),
    >> >> deciding on a possible North American production facility,
    >trying
    >> >to
    >> >> coax local business people to trust Peugeot and/or Citroën,
    >invest
    >> >in
    >> >> new facilities and join the dealer network, "federalising" the
    >> >models
    >> >> that are to be developed for the market, etc...
    >> >>
    >> >> It is worth remembering that a similar strategic study was done
    >by
    >> >> Peugeot in 1994-95 and the decision was to NOT come back.
    >> >> Unfortunately, that is a possible outcome in 2004 too. I hope
    >not,
    >> >> but I'd put the odds of a decision to return here at under 50-
    >50.
    >> >> There is a lot of risk for PSA in re-entering a crowded and
    >highly
    >> >> competitive market where product quality expectations are very
    >high
    >> >> and consumer protection laws are the strongest in the world.
    >> >>
    >> >> So it seems that PSA may come back towards the end of this
    >decade.
    >> >> It will be exciting if they do announce in 2004 that they will
    >> >> return, though the wait after that will seem endless.
    >> >>
    >> >> Mike Tippett
    >> >> 404 Coupé Injection
    >> >> 405
    >> >
    >> >
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