Why does the 308 have to sell in comparable numbers to the Corolla, i30 or Golf?
I can't see that ever happening, other than in its home market.
I can't see that ever happening, other than in its home market.
INCHCAPE To Show Us How To Sell Citroens?
- Thread starter Greg
- Start date
Skoda did well and Renault better. European cars can be sold in reasonable numbers in Australia. Not that long ago Peugeot sales were around the present level of those of Skoda but have been in steady decline. There is nothing magical about selling Peugeots although the formula has eluded the present importer. For the record Peugeot sales figures are comparable to half a century ago in a much smaller market. So market penetration is dramatically less. Such small figures reduce the economics of any operation, making product uncompetitively expensive and so continuing a downward cycle. Or as Inchcape put it "premiumisation". Which means we've given up on the mass market but sure as hell we're gong to make money out of the ones we do sell.
Well, it doesn't. That said, Stellantis will be the third biggest car company in the world. They should be doing better per month than 8 hours of Corolla sales, or half a day of Golfs, which are a direct 308 competitor.
They are not the only people doing "premiumisation" Look at the price increases on Mazda3 or Yaris. Difference is, Mazda and Toyota still sell in numbers that make things profitable. Fixed costs are, well, fixed and spreading them out over a few vehicles, not at the extreme luxury end of the market, is not sustainable.
Everyone pushes prices to the level the market will stand but the Japanese makers apart from Toyota don't hesitate to drop prices when the cars aren't selling. We use four wheel drive utes. Mazda, Nissan, Mitsubishi, Isuzu, Ford shamelessly raise effective prices by $10k (as at present) but just a quickly drop them when sales falter. So depending where the makers are on their marketing cycle replacement can be done at an economical level. Last year discounts up to $13k. Toyota has raised its four wheel drive prices with more on the way. Most utes are made in Thailand where they are sold on the Thai domestic market for 50% of the Australian price. So I think they are high profit units for the manufacturers. The problem with Inchcape raising prices is the cars weren't selling well in the first place. In the distant past whenever Peugeots didn't sell the distributors dropped the price and everyone was happy.
The name Stellantis does absolutely nothing for me. I guess they had to pick something but I think it's kinda 'meh'.
The new organisation will reportedly become the fourth largest car maker in the world, so I wonder what the chances are of it setting up an operation in Australia. Vale Inchcape??
PSA are investing heavily in production in Morocco, have a strong presence in Turkey and are going to manufacture in Russia and China. In theory they have lost their Iranian market but there may be back door supply. The Russian operation indicates they are prepared to invest heavily in operations that are small and not making any money based on some future projection. On sales of only 6000 a year they are already pressing body panels, are going to make entire engines and transmissions and will produce unique models suited to local conditions. The sort of thing we were always told wasn't viable in Australia. As politics tops business agreements in relations between Russia and France (look at the Mistral debacle) this investment will always be one sanction away from total loss. Stable and reliable long term markets like Australia do not seem to be of value to the smart economists who run the company.
Dec 2020 figures:
Peugeot 2008 – 0
Peugeot 208 – 0
Peugeot 3008 – 35
Peugeot 308 – 46
Peugeot 5008 – 19
Peugeot 508 – 25
Peugeot Boxer – 1
Peugeot Expert – 5
Peugeot Partner – 12
Peugeot Total – 143
Citroen Berlingo – 0
Citroen C3 – 4
Citroen C3 Aircross – 7
Citroen C4 Cactus – 0
Citroen C5 Aircross – 14
Citroen Dispatch – 0
Citroen Total – 25
Peugeot 2008 – 0
Peugeot 208 – 0
Peugeot 3008 – 35
Peugeot 308 – 46
Peugeot 5008 – 19
Peugeot 508 – 25
Peugeot Boxer – 1
Peugeot Expert – 5
Peugeot Partner – 12
Peugeot Total – 143
Citroen Berlingo – 0
Citroen C3 – 4
Citroen C3 Aircross – 7
Citroen C4 Cactus – 0
Citroen C5 Aircross – 14
Citroen Dispatch – 0
Citroen Total – 25
Export of small numbers to Australia is viable only as a side business to supply of the English market. If the English government goes ahead with the threat to close that market to combustion engine vehicles by 2030 then supply will be threatened. PSA is investing heavily in markets that will demand combustion engined vehicles for some time. They are nearly all LHD and will not necessarily meet our legislative requirements. Is this the reason the PSA presence in Australia is being allowed to run down?
January 2021 figures are out.
Peugeot 2008 – 30
Peugeot 3008 – 24
Peugeot 5008 – 12
Peugeot 308 – 9
Peugeot 508 – 14
Peugeot Boxer – 2
Peugeot Expert – 8
Peugeot Partner – 8
Peugeot Total – 107
Citroen C3 – 8
Citroen C3 Aircross – 3
Citroen C4 Cactus – 0
Citroen C5 Aircross – 6
Citroen Total – 17
Peugeot 2008 – 30
Peugeot 3008 – 24
Peugeot 5008 – 12
Peugeot 308 – 9
Peugeot 508 – 14
Peugeot Boxer – 2
Peugeot Expert – 8
Peugeot Partner – 8
Peugeot Total – 107
Citroen C3 – 8
Citroen C3 Aircross – 3
Citroen C4 Cactus – 0
Citroen C5 Aircross – 6
Citroen Total – 17
Three and a quarter Peugeots sold per dealership for the month. Life must be all go for a Peugeot salesman.
premiumisation = your customers go elsewhere.
I was ready to replace my 2007 Pug 307 with another Pug in 2017.
The nearest I could find to a direct replacement was over $40,000.
I bought a VW Golf wagon for $29000.
and it wasn't the bottom model - it was 1 off the base (Comfortline), wagon, towbar, and included a $1500 option package of autonomous cruise, collision avoidance braking, satnav, self-parking, other stuff. Dealer had exactly what I wanted in stock and was prepared to negotiate. Model update runout, too.
I would have been happy with the 1.2 litre 3 cyl petrol Pug in a manual, but they didn't offer that combo in Australia in a wagon.
Peugeot priced itself out of my reach.
It seems to be endemic problem - marketing and finance departments are in cloud cuckoo land, always dreaming up sales projections and profit margins they have no hope of achieving. I don't just mean Frog importers, either.
I read once (it might have been here on Aussiefrogs?) if you add up all of the car companies' expected sales for the year, it comes to about double the market...
I was ready to replace my 2007 Pug 307 with another Pug in 2017.
The nearest I could find to a direct replacement was over $40,000.
I bought a VW Golf wagon for $29000.
and it wasn't the bottom model - it was 1 off the base (Comfortline), wagon, towbar, and included a $1500 option package of autonomous cruise, collision avoidance braking, satnav, self-parking, other stuff. Dealer had exactly what I wanted in stock and was prepared to negotiate. Model update runout, too.
I would have been happy with the 1.2 litre 3 cyl petrol Pug in a manual, but they didn't offer that combo in Australia in a wagon.
Peugeot priced itself out of my reach.
It seems to be endemic problem - marketing and finance departments are in cloud cuckoo land, always dreaming up sales projections and profit margins they have no hope of achieving. I don't just mean Frog importers, either.
I read once (it might have been here on Aussiefrogs?) if you add up all of the car companies' expected sales for the year, it comes to about double the market...
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Peugeot was always a good bread and butter family car. In the rear drive period its sales were very sensitive to price. The Peugeot sales team has been wandering in the wilderness for decades. The market continually rises, Peugeot sales flatline at the level of years past. The best we can say is there's been worse.
Given that the 2008 is a new model, would some of the 30 be dealer demonstrators?
It's interesting that Partner sales are so low. The Berlingo seemed to be selling in double digits every month. Maybe they are having trouble getting inventory.
As for Citroen, it's very sad.
Peugeot are vigorously reinvigorating the Stellantis brands and looking to reclaim lost markets like the USA. If the PSA brands survive on the Australian market long enough they will have new and competitive models to offer. An option to improve the position of PSA in Australia is to give Citroen and Peugeot to the other Stellantis distributor Fiat Chrysler Australia who are more successful at marketing cars.
Not by much !!!! Fiat Chrysler .... when did you last see a new Fiat on the road ? Or a Dodge or a Chrysler that was not a 300C ... Jeep are having to restart their image too .. same mob !
But Jeep have successfully had an image reboot with an increase of 30% in sales to 505 units - those sorts of figures have never been achieved by Inchcape with PSA. Their sales line has trended remorselessly down, a pause here and a rush down there but always down. Not many Fiats or Rams about but both outselling Peugeot and certainly Chrysler has only a few sales but more than Citroen. Again Alfa down but more than Citroen. The sales graph at FCA would be a cause of some satisfaction but at Inchcape it's probably hidden behind a dunny door.
Ram and Jeep are actively advertising....
The rest are actively ignoring their market.
The rest are actively ignoring their market.
So I am driving along this morning and on the car radio I hear an advertisement for the Peugeot 2008.
Inchcape actually promoting PSA cars!! Will wonders never cease!!!
Inchcape actually promoting PSA cars!! Will wonders never cease!!!