Peugeot wants its dealers to adopt new corporate branding as it looks to sustain growing UK sales and improve customer loyalty. The announcement follows Toyota's planned £40m upgrade of its network.

Peter Haynes, director of the newly created Peugeot business institute, said 15 dealers had implemented the corporate changes, piloted at the carmaker's Robins & Day Pavilion outlet in Derby. He expects 40 of Peugeot's 365 dealerships to be on board by the end of the year.

“Most dealers will have adopted some changes by 2005, but they will not be forced to implement all the improvements,” said Mr Haynes.

Each element of the corporate identity can be adapted to meet the budget, timescale and requirements of dealers.

“The business institute allows us to draw together the three elements – premises, people and processes – we believe affect customers' experiences and satisfaction,” he said. “It will enable us to deliver our brand through the existing dealer network.”

Peugeot – No3 in the UK – will fund exterior investment, around £20,000 to £25,000 per dealership. It will include “striking blue cladding” and new signage incorporating the chrome lion badge.

Dealers will finance showroom upgrades, ranging from £35,000 to £75,000. Restyling will make the dealership more welcoming, with soft furnishings, children's play area, cafe and wooden walkways to guide customers around the showroom.

Peugeot will train staff to ensure they are knowledgeable and able to adapt to each customer as an individual.