Parent company difficulties often have repercussions for overseas subsidiaries, and the PSA Group (Peugeot, Citroen, DS and Opel/Vauxhall) is no exception. The Brazilian market crisis of 2014-2016 worsened the situation for the two French brands – they lost a higher percentage of market share than the average.
Carlos Tavares led the recovery of the group in Europe and his eyes also turned to the South American operation. He appointed Ana Theresa Borsari to run operations here, thus becoming the first Brazilian woman ever to hold such a title in this country.
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Borsari has been undertaking the repositioning of the brands, following head office orders.
“Peugeot is closer to the premium manufacturers, without taking room from the high end DS. Citroen will continue its role of leading-edge products, such as the C4 Cactus, but aimed at high volumes,” she told just-auto.
Improving product image and increasing sales are the biggest challenges. This month 12 Citroen and two Peugeot dealerships closed their doors. They belonged to entrepreneur Sergio Habib, who first started importing Citroens in the early 1990s, later becoming the brand’s president, owning most outlets and service shops, building brand image in Brazil.
The Brazilian operation remains a money loser but the automaker will launch a new offensive to recover market share. In October, the second-generation, locally made Citroen C4 Cactus, will be launched in Brazil. This model will undergo some changes for local sale, among them rear door roll down windows in lieu of the pop-out kind on European built models.
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By GlobalDataPSA has just launched two new products five days apart. First was the revitalization of the C4 Lounge. The model first saw life as the C4 Pallas ten years ago and adopted the current nameplate in August 2013. Always produced in Argentina, the compact-mid saloon is now fitted with LED headlights, daytime running lights and tail lights.
The company has also invested more in the interior. There are better quality materials, new seven inch multimedia centre with GPS, Android Auto and CarPlay, a digital instrument cluster and bi-zone air-conditioning. Rear seat room is very good.
The 1.6 litre turbo/171bhp (on ethanol) and six speed automatic gearbox form a high level pairing yet the steering wheel could be somewhat smaller in diameter. Up to six airbags are available. The price-benefit ratio is attractive: BRL93,920/US$28,500 to BRL102,790/$31,000.
The second newly introduced model is the Peugeot 5008, the seven seat version of the 3008, imported from France. This is a differently styled crossover without the SUV pretence. It offers handling close to that of a station wagon/estate car.
It is very roomy inside thanks to the 2.84m wheelbase. There are three bucket seats in the middle row, and the centre position is reasonably comfortable. It weighs 65 kg more than the 3008 and this makes it a bit slower under acceleration.
With a comprehensive electronic driver assistance package and all top items included, it ranges from BRL157,490/$47,700 to BRL166,490/$50,500.
These prices are close in direct exchange conversion to those of the top end 5008 in Europe which suggests a large head office subsidy in view of the different taxation applied in Brazil versus Europe.
