Peugeot will renew its image in the market to earn more profits

For months now we have known that the PSA Group is not going through a good period. Pressured by plant closures, profits that fall short of what shareholders demand, and European sales that are getting lower and lower, the most affected has turned out to be Peugeot.

Peugeot is set to embark on a brand renewal plan. Not only will its models benefit from this renewal plan announced today by its CEO, Philippe Varin, but Peugeot will also acquire a slightly more exclusive aura. The first thing Varin has made clear is that the lion brand will not leave Citroën behind as the low-cost brand, but will instead seek to stand out within the market.

Although Peugeot has in mind offering more premium models, this will not mean it will position itself in a higher market segment. Although the lions will add 17 new launches in 2013, prices will remain stable, according to its executives.

Unfortunately, to make money you have to cut to the bone and avoid losses. Peugeot avoided losing around 500 million euros last year, compared with 2011, at the cost of closing plants and laying off employees. Layoff plans will continue this year, although the unions in France are not willing to accept them, given that a French court has intervened to halt the wave of Peugeot layoffs. The court’s ruling is still pending.

It must be considered that if the project announced by Peugeot pays off, the benefits may not be seen immediately; it could take months or even years for consumers to react positively. That is, to what extent will Peugeot customers accept the new launches the company is planning? Will the new 208 and the 2008 SUV be enough to halt the lion’s decline?

Source: Automotive News