Citroen’s UK distribution arm has outlined a strategy for growth in the UK that it says embraces forthcoming changes to Block Exemption rules, writes just-auto.com managing editor David Leggett.
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At a presentation to journalists in London, Citroën UK’s Managing Director Alain Favey outlined plans to increase the number of authorised Citroën repairers, sales outlets and parts distributors in the UK.
Under the changes to Block Exemption that are due in October exclusive distribution arrangements with dealers will no longer be allowed and Citroën says it is grabbing the opportunity afforded by growing sales in Britain to set out its vision for growth based on ‘selectivity’.
Citroën UK plans to boost the number of sales points from 233 to 260 and expand the number of authorised repairers from the current 233 to a minimum of 350. The company also says it will expand the number of parts distributors.
Citroën pointed to its doubling of sales in the past four years and the growth in the marque’s UK parc total to one million units as justification for the expansion.
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By GlobalData“All of our future business partners will meet our criteria with regard to financial viability and competence of staff, together with the quality of premises and equipment,” said Alain Favey.
Citroën will be making individual contracts available in the areas of sales, aftersales/repair and parts distribution and is looking for new partners to facilitate its growth plans. Favey said that the three biggest ‘open points’ in terms of planned new sales territories not currently covered by Citroën were in Slough [home to Citroën UK’s head office], Coventry and Cardiff.
Favey said that Citroën’s UK sales success in the private retail sector of the market supported the strategy and also announced Citroën’s new ‘Citroën Approved Used Cars’ scheme which he said is the only used vehicle package in the UK to include an in-house manufacturer backed 12 month warranty – in line with that offered on new Citroëns.
Citroën sales of cars and light commercial vans in the UK have risen from around 80,000 units in 1999 to 150,000 units in 2001 and 154,000 units in 2002. Favey said that sales growth has been driven by product (he highlighted the sales success of the Picasso and C3 in the private buyer retail sector) and the availability of its HDi diesel engines.
