Rather than adding a near-premium subbrand or a dedicated upscale model line, Peugeot will squeeze more profits out of its lineup by adding higher-end versions to each model line. Peugeot CEO Maxime Picat also has great expectations for the new 308 compact hatchback, which he says has a better residual value than the segment's leader, the Volkswagen Golf. Picat spoke with Automotive News Europe Editor Luca Ciferri.
The new Peugeot 308 has moved upscale but its entry price is the same as the 307 it replaced. Will increased profit margins come from higher average transaction prices or from lower production costs?
There are multiple ways. With higher content and higher quality we can ask for better prices or lower incentives. Half of Europe's compact car sales are to fleets and a high quality level helps a lot on residual values here. Indications show that the 308 is even better than the VW Golf on residuals. This clearly helps us in fleet pricing. We have also found innovative solutions to trim our production costs, which help us both in fleets and with private customers.