Peugeot Re: [peugeot list] OT Alfa returning to N.A. 2007 model year *confirmed*--whither PSA?

From: p404c (tippett@shaw.ca)
Date: Tue 16 May 2006 - 22:50:39 EDT

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    --- In peugeot-L@yahoogroups.com, Jim Bartley <pei505turbo@...>
    wrote:
    >Recently, behind the scenes at the Montréal International Auto
    >Show, there was talk that PSA was going to come back to Canada very
    >shortly and was in the process of negotiating quietly for (a)
    >Montréal area dealer(s) to spearhead the N.A. re-entry, via Québec.

    That would be great if it's true, but the reality is that to certify
    a car (even just one model) for Canada would require more than a
    token presence in sales showrooms, to pay for the numerous Transport
    Canada and Environment Canada modifications.

    Mercedes-Benz certified the smart fortwo for Canada on the strength
    of expecting about 1500 sales per year. When they panned out at
    well over 4000 per year, the extra was gravy. The same will hold
    true for any manufacturer, unless they are willing to have some BIG
    loss leaders in the marketplace.

    But for a carmaker like Peugeot, the idea of a low-key toehold in
    Canada makes little - if any - sense. They need to come back BIG,
    and if they don't, they'll go the way of Lada Canada.

    Trivia: despite no obvious "French connection", more Peugeots were
    sold in the Vancouver area than in Québec in the period 1974-1977
    when Brasso was hawking 504s in Calgary and Vancouver. After 1977
    Peugeot's sales in Canada became a token joke anyway....especally
    when Chrysler sold 505s and then Autolion brought in the 405 in 1989
    and then promptly went belly up. I have not noted any particular
    cultural affinity towards French cars in Québec - certinly no more
    than in BC - after all, the Québecois are North Americans first, and
    very distinct from the French.

    This trend is reflected in the sale of smart cars (built in Hambach,
    France): BC - and Vancouver Island in particular - are by far the
    car's hottest market. About 10% of all smarts in Canada have been
    sold on Vancouver Island, which has a population of 700,000. At
    this time, Canada is taking 10% of ALL smart production. Mercedes-
    Benz Canada is stockpiling for the coming downtime when the factory
    will be retooled for the new version of the fortwo, so the average
    of 6% over the past 20 months would be a fairer representation,
    though it is climbing.

    The moral of the story is that Peugeot should follow the smart lead
    and sell cars in all main Canadian urban centres, or at least
    Halifax, Toronto, Montréal, Québec, Ottawa, Winnipeg, Regina,
    Edmonton, Calgary, Vancouver + Victoria.

    The problem will be finding willing dealers. That is where
    Mitsubishi comes into the picture. I think there is a high
    probability of Peugeot-Mitsubishi dealers being set up. Since
    DaimlerChrysler cut them adrift, Peugeot has entered into a contract
    to but some SUVs from Mitsubishi, which will be built in Japan and
    sold as the Peugeot 4007. Mitsubishi dealers are struggling in
    North America and so the injection of a few sexy French models (I am
    thinking of the CC cars) would help. With the advent of ULSD here
    this fall, the HDI models could be sold in 45 States, and all
    Provinces. A test run of this marketing model in Canada would make
    some sense, to work out the bugs in the sales, parts logistics,
    servicing etc.

    It seems that smart is about to be launched in the USA, after the
    positive learning experience they've had over the past 20 months in
    Canada. I know that other carmakers have been shocked by the
    success of smart here, because it belies the stereotype that North
    Amercans don't like small cars. VERY small cars, in this case ;-)
    No doubt Peugeot would be aware of this, at some level....

    Hmm maybe it's time for me to write J.M. Folz another letter.....

    Mike Tippett
    404 Coupé Injection
    405 DL
    smart fortwo cdi cabriolet

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