Citroën’s new MD in the UK, Greg Taylor, has confirmed that the French brand will not be returning to the discounting business model that it used to operate.
Previously, the firm has been well known for offering heavy cut-price incentives across its models, but Taylor has told Autocar that this is not something he is looking to restart, even as supply levels return to the car market. Rather, he believes the income squeeze offers Citroën a chance to use its “value” legacy to encourage new customers to the firm.
“There’s no need or impetus to discount," he said. "Instead, where we are this year, as we look at supply freeing up, is with a question mark over demand in this country in terms of the cost of living crisis. I see this as an opportunity for Citroën to take share this year because of that positioning as a value proposition.”
It’s clear Taylor perceives Citroën as being able to pinch sales from traditionally more premium rivals, given the state of the economy at the moment. He said: “Is there an opportunity that people will come out of perceived more premium offerings that had higher monthly payments than Citroën? [If we] exceed expectations of their previous car, there is a prospect there.
“If you look at the technology in the Citroën, you look at the quality in the car… you’re getting value without compromise.”
Even business areas such as the wholesale rental, previously a target for manufacturers like Citroën to offer healthy cut-price deals when companies buy in bulk, are now no longer the same. Retained values are now too important in a market so dominated by PCP loan agreements. “We have to manage it. Ultimately we’re in control of what we sell the car for, so it falls on us as the brand to manage it. We’re not going to discount heavily into rental.”
The agency retail model gives Taylor the opportunity to control all of this more tightly than was previously the case. He’s not rushing into it, only promising a model for retail towards the latter part of the decade - vans will come sooner, at the end of 2023 - but he is convinced that by “buying time” and not being a “first mover”, it is the right strategic decision.
Previously, there was a concern that with Korean brands Hyundai and Kia entering the market, they would undercut mid-level companies like Citroën. But Taylor doesn’t see that as an issue any more. “They’re so well established now. The job for established European brands like Citroën is to make sure that the heritage that put the brand there in the first place stays true to the products that are delivered today.”
To Taylor, that heritage is mobility for all, with cars like the 2CV or “affordable commercial transport” with the H Van. Even the Xsara Picasso. In Taylor’s words, offering “good value, but not cheap”.
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