Peugeot: A Bleak Future On The Horizon?

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The Peugeot car brand has been familiar in most parts of the world, particularly in places like the UK, Poland, Germany, Austria, and many others. Their cars have enjoyed global patronage due to their ruggedness, classy designs, and slick automobile features. This French company’s success has enabled them to have car dealers around the world without too much effort.

But all of that success is gradually fading away, and no one is paying any attention. Peugeot car dealers are frowning severely in some places due to the company’s unfavorable cooperation. This and many more are just an indication of how bleak the future of Peugeot will become if nobody takes any urgent steps to ratify the situation.

Car dealers are opting out

Unless the Peugeot chiefs want to claim that they are not aware of these developments, the number of car dealers shutting down their showrooms is becoming increasingly alarming. Guys are taking a break from selling Peugeot cars because the French company, PSA, is giving their dealers the impression that they are inconsiderate about how they feel. The worst part is that even those who greatly impacted the market in favor of Peugeot are suddenly calling it quits. Few weeks ago, biggest polish magazine about French cars, Francuskie.pl, informed about one of the oldest and best dealers leaving the network.  And he is not the only one. If nothing is done, a sharp, negative reversal in market trends is what will follow.

Losing out the biggest markets

Amassing profits in any business boils down to a game of numbers. If you want to optimize profits, then you cannot afford to lose your customers. Unfortunately, that is what Peugeot is doing at the moment. Losing out their car dealers is an implication that they are going to lose a lot of customers. With car dealers in customer-rich countries like Germany, Austria, and Poland already frowning at the current situation, you can tell that that is a marketing strategy that will undoubtedly lead to the demise of the Peugeot car brand in those countries.

Not enough profit

One way to keep up with the other car brands is by encouraging car dealers with healthy profits. That way, Peugeot can be sure of getting their products to all the parts of the world, because interested dealers will be signing up with the program. But guess what? PSA has decided to do the exact opposite, by slashing down car dealers’ profit.  No thanks to their new policies. How in the world are they expecting car dealers to continue with their products when there are no incentives to get them going?

Conclusion

The French company in charge of Peugeot cars seems to be taking this recent development for granted. With their car dealers unhappy with these conditions, there will be only one option – buyers of the Peugeot brand will drop. It would help if someone stepped up from PSA and addressed this particular issue now before it gets too late. That is because if nothing is done to avert the trend, we may be looking at a disappointing future for the Peugeot car brand.

Source: Just-Auto.com, Francuskie.pl, Largus.fr