Re: PSU Students in Need of Peugeot Info
From: David Towle (davidtowle@lycosmail.com)
Date: Wed 13 Nov 2002 - 12:23:48 EST
Mike & PSUites,
You covered some excellent points here. I agree totally with the "best of" Peugeot/Citroen strategy for the USA, they're all based on the same platforms anyway. This could go as far as picking the wagon from one lineup and the hatchback from another, as long as it is done intelligently.
One thing I'm surprised you forgot was the rally connection. This is the one area where millions of US citizens, especially younger people, are familiar with Peugeot, both from video games and the races on Speedvision. Peugeot desparately needs for Europe, and would require for the USA, a 4WD, 300hp rally 206. Price is no object, don't want to sell that many anyway, its to get people in the dealership door. Require every dealer to have one on display.
Right now I would pick the following lineup: 206 WRC only, C3, 307, Picasso maybe, and C5, with the C6 to come when available.
Dave Towle
> From: "coupe404" <tippett@pacificcoast.net>
> Subject: Re: PSU Students in Need of Peugeot Info
>
> Well, you sure have chosen an obscure topic for your project!
>
> First my Peugeot credentials: I got my first Peugeot (a bike) at the
> age of 9, in 1969. My first car was a Renault 5, but since the
> beginning of 1981 I've owned at least one Peugeot at all times.
> Today I own two.
>
> Here are some of my thoughts, for what they're worth...
>
> 1. Forget about former Peugeot owners as a significant target
> market. There never were enough of them to be of any real
> significance - even at Peugeot's zenith in the USA. Of former
> Peugeot owners over here I'd hazard a guess that at least 60% of them
> would never consider buying another one. The remaining hard-core
> members tend to be enamoured of one or two particular obsolete models
> and many are not too sure about Peugeot's current products - the
> look, the value, the reliability, the FWD conception.
>
> 2. The 206 CC is not the best model to bring over. Its roof is
> unreliable (so much so that Peugeot's just changed contractors -
> they're now using the same one that Mercedes-Benz used for the SLK
> models) and it's a bit too small. The "rear seats" in particular are
> a waste of space. Shoot instead for the just announced 307 CC - it
> has 4 real seats, a properly engineered roof system, looks a lot
> better than the 206 CC and is likely to be more profitable. The
> whole 307 range should be brought in, as they're all quite good. The
> hatchback 206s are good too, but it's an old model nearing the end of
> its time so the costs of certifying it would not be recoverable.
> Same with the 406 Coupé - it's a beautiful car, but it's got one year
> of production left, tops. This is sad, as I'd like to buy one of
> these...
>
> 3. The 607 is duff. Not unreliable, just unsaleable. Don't waste
> one second on this model. Only French bureaucrats and embassy
> personnel would be caught dead in one. Seriously, it has nothing
> going for it and would get slaughtered by the competition, just as is
> happening in Europe. Peugeot faced the same choice in 1991 with the
> 607's predecessor, the 605. It was the only car that could be
> offered to former 504 and 505 drivers, but it was such a dog (there
> were HUGE warranty problems in Europe on the 605 prior to 1991) that
> Peugeot decided to pull the plug in the US market before the US
> version of that car ever saw the light of day. Wait instead until
> the 407/507 is released, and hope that its styling is a little less
> beer-gutted than that of the lardy 607 ;-). The 407/507 may well be
> a good car to sell here.
>
> 4. Citroën absolutely must be brought back at the same time as
> Peugeot. Citroën represents the high-tech edginess that many people
> seem to appreciate these days. It would be easy to market the new
> Citroën with its super-advanced Hydractive suspension. People lap
> that kind of stuff up - it's great publicity if the marketers know
> what they are doing. I would suggest that at least two models be
> considered: the C3/Pluriel (which - unfortunately - has conventional
> suspension) and the soon-to-be-announced large Citroën sedan. There
> are far more hard-core Citroën fans in North America than hard-core
> Peugeot fans. This is due to the old Citroëns' "love me or hate me"
> styling and technology. Both marques complement each other and just
> about cover the entire Francophile spectrum, to the extent that it is
> a factor over here!
>
> 5. I can't think of any partnership arrangements that could be made
> from a marketing point of view in Canada and the USA. The most
> obvious ones like Toyota would not work due to huge model range
> overlap. Plus Toyota has been apeing Peugeot styling for its present
> generation of cars. Notwithstanding their cooperation in production
> of a small vehicle, I'd say Peugeots in Toyota showrooms is a no-go.
> Might be worth a try though. I can't think of any other US car
> retailer that would make a better fit. So then you're left with the
> dilemma of trying to set up a fledgling retail chain with a virtually
> unknown product. Would any private investment dollars be interested
> in such an experiment? Perhaps the solution is for PSA Peugeot-
> Citroën to dig deeply into their corporate pockets and build a number
> of manufacturer-owned dealerships in key markets. This is what
> Mercedes-Benz has been rather good at. But - very important - these
> dealers must be sprinkled somewhat evenly across the land, because
> car owwners like to travel and not worry too much about a potential
> breakdown in Deliverance County, 1500 miles from the nearest service
> point. Once the initial dealer network establishes credibility and a
> marketing foothold, get other private investors interested in
> participating in the dealer network. There may be a few hardy souls
> who would sign on right away, but those will be the exception, not
> the rule.
>
> I hope these ramblings have been helpful, or if not, at least
> slightly entertaining.
>
> Best of luck,
>
> Mike Tippett
> B.C. Canada
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