Peugeot Planning More Upmarket Trim Levels and Expansion Out of Europe

believes that the only way to save itself from complete collapse to move upmarket. In the last several weeks, a flurry of news has come out about the French automaker possibly being bought by Chinese joint venture partner Dongfeng. Its partner General MotorsGMUnited States of America, 1998 > present8 models
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has already cut back on planned jointly developed models because of PSA’s poor financial situation.

"The only solution is to move upmarket," said Peugeot CEO Maxime Picat in an interview about the company’s future with Automotive News Europe.

However unlike competitors, Peugeot has no plans to launch a sub-brand. Instead, it will create higher content versions of its current cars.

The first model to take this approach will be the new Peugeot 308Peugeot 308 Gen.2France, 2013 > present103 versions
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that will offer better interior quality and more technology. It is also cutting production costs compared to the prevoius generationPeugeot 308 Gen.1France, 2007 > 2013242 versions
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.

“European 'generalist' automakers like us are the squeezed middle. We also have a European manufacturing footprint that we have to protect and the only solution is to move upmarket. In the past we had two brands competing for the same customers,” he said.

In the future, PSA will be divided into three separate consumer sections. Citroën’sCitroënFrance, 1919 > present94 models
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C models will be the basic cars; its DS cars will be in the middle, and Peugeot will be more upmarket.

Peugeot will still offers cars in the same market segments, but those models will have better equipment. Picat says that 40% of 208Peugeot 208 Gen.1France, 2012 > present103 versions
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sales are the top two trim levels, and it is 70% for the 2008Peugeot 2008 Gen.1France, 2012 > present58 versions
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. He also announced that the next version of the 208 will be the even sportier 208 R.

It is also going to further differentiate shared models. Picat says that the next generation Peugeot 107Peugeot 107France, 2005 > present41 versions
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and C1Citroën C1France, 2005 > 201436 versions
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will still share a platform with ToyotaToyotaJapan, 1937 > present155 models
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, but they will not look as similar as they do now.

At the same time, PSA will expand into foreign markets. The 301Peugeot 301 (modern)France, 2012 > present5 versions
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will be sold in China, North Africa, Turkey, Eastern Europe, Russia, Mexico, Chile and Argentina. Total worldwide sales are estimated for it to hit 150,000 units.

Source: Automotive News Europe