PSA to further differentiate Peugeot and Citroën cars

CitroenC4

The PSA group is having a hard time in Europe, partly because of a self-confessed issue of having two separate brands, Peugeot and Citroën, positioned too closely to each other. With too many models contesting the same price market, they’ve been stealing sales from each other and losing out in the process.

As reported by Autonews Europe, the French automaker now aims to shift the two brands further apart, in a fresh bid to stay afloat in the tough and crowded European market. Clearly repositioned, Peugeot and Citroën will each target a different customer base to increase sales numbers and of course, profit.

The product line-up will be split into three distinct brand positioning. Citroën’s mainstream model range – from the C1 to C5 – will form the base of the new structure. They will be priced cheaper than before and offer a better cost of ownership with an “optimised cost-to-function ratio”. As such, Citroën’s C-line will lose out on PSA’s latest technologies and most powerful engines, but be more accessible to the lower end of the market.

CitroenDS4

Positioned above that range will be Peugeot. The entire brand will move upmarket compared to where it is positioned now, into the so-called semi-premium segment that’s dominated by Volkswagen. The upcoming 208 GTi and 2008 crossover are two examples of this new brand philosophy, packing more tech and premium appeal with prices to match.

Citroën’s upscale DS-line will be kept at the top of the PSA pyramid, but is set to be expanded with more models in the future. The DS line-up will offer the most complex technologies and highest-tuned powertrains that PSA can offer, serving as halo models to the more affordable Citroën and Peugeot offerings.

In Malaysia the Naza Group handles both Peugeot and Citroën franchises. Citroen was launched recently with the DS4 and DS5. How they plan to implement this new brand shake-up remains to be seen, and will shape up the local Continental car market in the next few years.

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Hafriz Shah

Preferring to drive cars rather than desks, Hafriz Shah ditched his suit and tie to join the ranks of Malaysia’s motoring hacks. A car’s technical brilliance is completely lost on him, appreciating character-making quirks more. When not writing this ego trip of a bio, he’s usually off driving about aimlessly, preferably in a car with the right combination of three foot pedals and six gears.

 

Comments

  • therazo on Mar 14, 2013 at 9:08 pm

    hope the price of the 208 here won’t be affected

    Like or Dislike: Thumb up 4 Thumb down 1
  • kensomuse on Mar 14, 2013 at 9:37 pm

    Hi Hafriz, it was nice catching up with you at the Golf Owner’s Preview Party on Tuesday.

    I do agree that the brands has values that appeal to similar target markets. But to position Peugeot as the upmarket brand (think Hyundai?) and Citroen with 2 opposing values (DS upmarket, C-range cheaper than Peugeot) ….. that I’m not too sure, particularly with Citroen’s philosophy. Imagine a year down the road people ask, What’s a Citroen? An expensive, cheap, upscale, basic premium brand? I’ve never seen a positioning strategy that aims at opposite ends simultaneously; imagine someone saying “I drive a Citroen.” “Really? The rich or the poor type?”. I can imagine the headache the marketing team has …. this month we advertise on the DS, next month, we do the cheap C range, or maybe in one month we do both in one newspaper ad.

    As for Peugeot …. well, we’re not just talking about making changes to the models but the entire operations as well. Change the management style to be more customer oriented, change the engineers to make their cars more reliable, change the designers to make them more appealing, restore confidence among the dealers ….. let’s see how determined the CEO is in turning the brand around. If Ghosn can do what he did to Nissan and Renault, nothing is impossible in this world

    Like or Dislike: Thumb up 17 Thumb down 2
    • Josh Ling on Mar 15, 2013 at 12:44 am

      Personally, I don’t think it’s a wise move to move Peugeot upmarket, and Citroen C-range downmarket. It should be another way round, without sacrificing the overall quality and premium build and material quality.

      And if they are really serious about making money, how about creating another separate brand that sells some very affordable cars, like what renault has done with dacia, and nissan (yet to do) with datsun?

      Like or Dislike: Thumb up 5 Thumb down 0
    • ProDSG on Mar 16, 2013 at 8:13 am

      Both cars are messed up. That is why VW has overtaken both of them in Malaysia and even globally. Once they organise their brands again, I think people will still continue to stay away from them!

      Like or Dislike: Thumb up 0 Thumb down 0
      • prodsg-not quite true, VW is a recent success in malaysia…i bet once PSA and the local partners get their act together they will in matter of time overtake overpriced VW cars

        Like or Dislike: Thumb up 0 Thumb down 0
  • jacksonkua on Mar 14, 2013 at 9:50 pm

    A wise move!

    Which means DS Line > Peugeot > Citroen main stream of C series

    Like or Dislike: Thumb up 6 Thumb down 0
  • CITREON C5 > PEUGEOT 508 .joke la

    Like or Dislike: Thumb up 1 Thumb down 0
  • Sam Loo on Mar 14, 2013 at 10:54 pm

    Citroen and Peugeot has 3 things in common.

    They will break down mysteriously, they have ultra low RV and owners will have tow truck operators in their speed dial list

    Like or Dislike: Thumb up 4 Thumb down 27
    • Sam loo- i think you have a phobia with french cars..no they never break down mysteriously and i am talking about experience whereas you are not.

      Like or Dislike: Thumb up 3 Thumb down 0
  • kadajawi on Mar 14, 2013 at 11:28 pm

    Problem is that Citroen IMHO has a more upscale image. They are the ones known for comfort. Now they’ll be positioned even lower than they already are? Peugeot’s image isn’t exactly great, moving them upmarket in Europe will be quite a task.

    To me the big differentiator was what the brand focused on. A Peugeot was conventional, a bit stiff. A Citroen was avantgarde and comfortable. How on earth are they offering the hydroactive suspension in a cheaper C5? And without it, why bother with a Citroen or Peugeot when you can have a Skoda?

    Like or Dislike: Thumb up 12 Thumb down 0
  • from malaysia market point of view i think its the other way around.citroen does have sense of exclusivity compare to peugeot.not only that,this news might cause newly launched ds prospective buyers to have 2nd thought as they know citroen brand will be positioned lower than peugeot in future.malaysian market are dominated by brand conscious customers.

    But this move definitely will allow us to have more choice in future.basic citroen c3 is such a nice car to drive.i do hope naza will consider bringing this car to our market.replace that weird looking 207 sedan

    Like or Dislike: Thumb up 4 Thumb down 0
    • Aiman on Mar 15, 2013 at 7:18 am

      “Malaysian market are dominated by brand conscious customers”

      KBC, it is so damn true…they willing to pay more for a badge rather than function n practicality…i wonder why…hmm

      Like or Dislike: Thumb up 2 Thumb down 0
    • kadajawi on Mar 15, 2013 at 3:20 pm

      But Citroen will be both a Skoda and an Audi competitor… so DS buyers shouldn’t worry too much. They’ll just have to say they drive a Citroen DS, and all will be fine. Perhaps.

      Problem is… Citroen is in Europe already placed against the Koreans and Skoda, maybe slightly above them. Pushing them even lower will be a bit hard. Getting Peugeot from essentially the same position, but with fewer fond memories of the great old Citroens up to a VW level will be very hard. IMHO even in Europe Citroen has a better image than Peugeot. Peugeot is very me too, it doesn’t stand out.

      Like or Dislike: Thumb up 3 Thumb down 0
  • lobservateur on Mar 15, 2013 at 4:35 am

    it will be a ginormous effort in this direction as the two brands were generally “image-marketed” over the years with Peugeot to the masses and Citroen for the wealthy/politicians.

    Citroen fanboys CDG, Mitterand and Pompidou would probably roll in their graves and Chirac spouting “mon dieu” upon hearing this news. :)

    Like or Dislike: Thumb up 3 Thumb down 0
  • oilworker on Mar 15, 2013 at 7:08 am

    wish naza will bring in the diesel hybrid cars…

    Like or Dislike: Thumb up 0 Thumb down 0
  • thebugbud on Mar 15, 2013 at 7:32 am

    Getting the feeling that Peugeot bought over Citroen and those guys from Peugeot will prefer to keep themselves a better position.

    Like or Dislike: Thumb up 2 Thumb down 0
    • kadajawi on Mar 15, 2013 at 3:22 pm

      That’s what I think too. Peugeot bought Citroen (long time ago), so their pride won’t let them be the really cheap brand. Realizing that Citroen is in a better position they let Citroen make use of that with the DS range.

      Personally I’d rather have them create another brand for the low end market. But perhaps they can’t afford to do so.

      Like or Dislike: Thumb up 0 Thumb down 0
    • I cant see Pug 508 1.6 thp at RM 156k being a brand higher than Citroen C5 at RM 195k?

      Like or Dislike: Thumb up 0 Thumb down 0
  • it is difficult to understand the French…..

    Peugeot sandwiched in between the two Citroen range? What a joke…

    Like or Dislike: Thumb up 3 Thumb down 0
  • AlifJamal on Mar 16, 2013 at 10:44 am

    I would rather put Citroen on higher position. Citroen has a lot of good technology such as Hydraulic suspension.. in fact Proton used Citroen diesel engine for the Wira 2.0.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Abrahimosandwich on Mar 16, 2013 at 10:45 am

    Frenchies will never say the truth that…. Swedish make better cars.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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