Reports indicate that PSA/Peugeot-Citroen is planning to upscale its Peugeot brand by upgrading its cars to differentiate them from Citroën models. The group is also looking at doubling the brand’s average volume through its alliance with General Motors.
The move upmarket is hoped to assist the brand to return to profit, following the record five billion Euro net loss posted last year when European auto sales collapsed. The group is seeking to raise the number of premium-marketed vehicles from the 18% of its total deliveries last year, the reports said.
The models leading the way are the 208 GTI performance hatch and 2008 compact crossover. PSA added that a very rich range of products and 17 vehicle launches in 2013 would support the positioning of its brands, also stating that Citroën would not become a low-cost brand.
Despite saying that the European auto market was likely to fall a further three to five percent in 2013 and remain depressed “for the foreseeable future,” PSA is aiming to get Peugeot to reach a break-even level by 2014 and return to profitability in 2015, the year the brand is looking at taking 50% of its annual delivery volume outside Europe.