Peugeot is back!
We all love a good come back story, but is Peugeot’s strategy to relaunch in South Africa a bit too optimistic? I head to Pretoria and find out what’s bubbling under the surface at the newly resurgent Peugeot South Africa.
The new 5008 is Peugeots flagship SUV
My Uncle Fred bought his first Peugeot in 1975. He was so fond of this car no one was allowed to slam the doors closed. No, they had to be pushed. He now drives a 2008, his daughter owned the previous-gen 3008 but even though he’s experienced some parts issues, he refuses to buy any other brand.
Following ailing sales in South Africa, parts issues and the current economic climate the French car sales company has had a tumultuous relationship with the South African market of late.
Fast forward to 2019 Peugeot now has a fresh approach, led by a fresh face. Xavier Nicolas is Peugeots new Product Director and he’s the same guy that helped get Renault out of the doldrums in 1999. I’ve heard some industry heads say: “If anyone can do it, he can” But what does “It” mean? And what’s the plan?
How about slicing away 30% of the business. Certain dealers and underperforming/redundant staff members were either shuffled or let go. A harsh proposition in a country with 29% unemployment but according to Xavier, something that needed to be done to save the company. Then Peugeot international stepped in on a dealer level to get rid of any cars that were left unfixed. The number of unrepaired cars totalled over 500, parked at various dealerships. This number has now dropped to below 30.
The new 108, is priced competitively below R180 000 and is geared to entice new buyers into the brand
All new Peugeots now come with a 5-year warranty and service plan. This is to hopefully aid resale value and the competent, yet badly selling 308 has been dropped from the range with the focus now firmly on the compact 108 that was just launched and the growing SUV market in South Africa. The latter being spearheaded by the brilliant 3008 and new 5008.
Peugeots product has never been in question. Just ask the nearly 1 million Europeans who bought Peugeots last year. But in South Africa, the brand has never soared to these heights. Peugeot is now committed to change that and personally I have never seen a brand this committed to a turn around in my career. So for the next few months, just like some of you, my Uncle Fred and I will be watching closely.
