Peugeot is looking to turn around its falling sales and 5.14% of the automotive retail market this year with a flood of new product.
Peugeot UK managing director Jonathan Goodman believes additional sales from the new 3008, 5008 and RCZ will help dealers spread business across the product range adding at least 20,000 units extra to total sales.
He said that while models like the 308 and 207 were important for the brand, he wanted dealers to be able to spread sales across a range rather than focussing on just a couple of models.
The French brand is looking for an improvement in market share to 5.8% this year in comparison to 2009 which saw a drop of 13.6% in sales last year compared to 2008.
Dealers have seen new product in the form of Peugeot’s 3008 and 5008 MPVs and its more aspirational RCZ sports car, which goes on sale later this year, will provide a halo for the brand and allow a wider margin of profit for dealers.
Goodman said: “If you look at the new product coming through, there’s at least 20,000 unit sales there. I know things are tough but I think it’s a very achievable target.
“We’ve taken a long hard look at ourselves and I don’t think dealers have been enchanted by the fact we’ve gone from being an 8% market share player to 5%. It’s something we need to address.”
Average profit across the network is at 1% return on sales in comparison to 0.3% a year ago and Goodman admits there are still dealers in the network making a loss.
He said: “We have to be giving practical reasons to the dealers that are in the lower quartile of the network and we will be giving training and help.”
Peugeot’s network has moved down from 300 sites to 250 and Goodman believes that’s the right level for the business.
Goodman said: “We cannot be satisfied with how we did last year and that goes for all of us.
“There’s no doubt it’s going to be a tough year but I’m not a harbinger of doom. It’s also going to be a year of opportunity and in order for us to realise what we want to do we’re going to have to work hard with the dealer network.”