By Miles Downard
The Peugeot Citroen scenario here in South Africa has been under fire for some time, especially after it was announced in 2018 that Citroen would be pulling out of the country. Accordingly the rumour mill was full of murmurs that Peugeot itself would follow given its poor sales figures each month.
But here we are nine months into 2019 and Peugeot’s doors are still open, even if the company has been rather quiet since Citroen’s departure. So quiet that an invite to a ‘rebirth’ day almost went unnoticed in my mailbox.
Arriving at the location we were met with a history of Peugeot, including cars from the very early 1900s, through the years, culminating in the current line up of 108, 208, 2008 and 5008.
It’s a rationalised product selection, some 40% of what was once offered. And it’s not only the offering that’s been slashed, but also the dealer network where the bottom 30% were closed due to poor performance in a wide variety of metrics, not least of which was customer satisfaction.
This overhaul has been keeping new CEO of Peugeot SA, Xavier Gobille, rather busy over the 9 months since he took the reins. He addressed us at a business conference on the day, explaining his decision making process around the decision to commit to South Africa.
In Europe, Peugeot boasts a rather hefty 16% share of the market. By comparison it’s hovering around 1% locally. The obvious thorn in the local operation’s side is poor public perception driven by shoddy after sales service, including bad dealer interactions, lack of parts and the price thereof once they do arrive on our shores. It’s not a pretty picture which is why so many dealers have been removed, which is a temporary measure while new ones are trained up. In fact Peugeot aims to open 5 new dealers by the end of 2019 alone, while he aims to grow local market share to 2.5% by 2021..
To allay fears around parts availability the new CEO ensures that parts will arrive within 48 hours failing which the customer will receive a courtesy car. That’s a pretty big promise in itself. But perhaps even bigger is the standard 5 year service plan and warranty that’ll come standard with every new Peugeot sold, even the entry level 108.
Turning to which it must be said is a brilliant value proposition. Starting at R180,000 you get a 1.0 litre petrol motor, four seats and a neat infotainment system with Apple CarPlay and Android Auto. What’s more is the 6 airbags and ABS, making it the safest car you can buy new for under R200,000.
On the other end of the spectrum sits the new 5008 SUV. It’s a handsome beast, but in a very different way to anything German or Asian. There’s a subtle French sophistication to the design which is very appealing indeed. And that continues on the inside with one of the most alluring cabins I’ve seen in a long time, with a distinctly practical layout of seven seats, the middle row of which can move completely independently of each other. The rear two seats can be removed entirely too, using just one hand. Out on the road the diesel power plant delivers well and it rides very comfortably indeed, even over dirt road surfaces. There’s a petrol option as well should that appeal.
It’ll be very interesting to watch this story unfold. Knowing Xavier fairly well, mainly for his turnaround of Renault in South Africa, I have a certain level of confidence that his ambitious plans can be achieved. Peugeot itself has always made great cars, so now it’s a matter of changing that terribly sticky aspect called public perception. Would I take a punt on buying one in the hope this all works itself out? Yes I would.
