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Peugeot guarantees first quarter bonuses

Peugeot has guaranteed bonuses in the first quarter for all its dealers.

Pierre Louis Colin, Peugeot UK managing director, said the move would help to give dealers the confidence to sell more cars.

He added that Peugeot is conscious of the issues facing dealers and is working with them to find solutions to cashflow problems.

Regional managers, familiar with local areas in which dealerships are located and therefore better informed, are also helping with business plans on site.

Colin said: “We know we will get out of the crisis. What I’m afraid of is dealers not getting through.

“There are dealers who are extremely profitable, but it depends on the support of banks. If they don’t give more flexibility and if there are restrictions, then there might be some difficulties.”
Peugeot is being pragmatic with targets, added Colin.

Sales targets for January are down 30% on last year, but at the time AM spoke to Colin, targets had not been announced to the network for February and March.

He said it was “extremely difficult to predict where the market will go” and will set only two months’ targets at
a time. However, he remains optimistic and points out
25 Blue Box refurbishments will open this year.

Dealers’ investment in these new-look showrooms demonstrate their trust and commitment to Peugeot, said Colin.

After cutting the network from 320 to around 270 last year, he expects more stability, although there is always a 5-10% renewal rate.

Approaches to Peugeot for franchise opportunities are mostly “middle-sized, serious and financially solid groups who are ready to build their future with us in the long term”, Colin added.

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