PSA Plans Bargain Brand

Bertel Schmitt
by Bertel Schmitt

France’s PSA wants to get more expensive and cheaper at the same time. PSA plans to up-position their Peugeot and Citroen plans. Probably envious of Renaults success with their Dacia brand, PSA wants to create a completely new low-cost brand, says Automobilwoche [sub].

PSA doesn’t want to sell this brand through their existing network, PSA chief Jean-Marc Gales said. “We need a completely new distribution system for that.” On-line sales are not out of the question.

It is undecided where these bargain basement French cars will be made. Production in emerging markets or in China is possible. “We are running the numbers on the different options,” said Gales. In Europe, PSA is currently capacity constrained.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Kadett72 Kadett72 on Mar 03, 2011

    Return of the Simca 1100?

  • Marcelo de Vasconcellos Marcelo de Vasconcellos on Mar 03, 2011

    Talbot would probably be wrong. IIRC correctly it was a lux brand back in the day. SImca always competed heat to head with Renault and Pegeout. Chrysler killed it (sadly!). So, maybe SImca could be back, but that brand probably belongs to Chrysler-Fiat now. I'd bet though they'd be willing to sell the rights to it.

  • Pete Zaitcev Pete Zaitcev on Mar 03, 2011

    Completely new distribution network sounds like a good idea. Scion was ruined by the sabotage of existing Toyota dealers, who did not want low-margin sales.

  • Robert Schwartz Robert Schwartz on Mar 03, 2011

    Saturn, Pontiac, Mercury, Plymouth, Oldsmobile. You want 'em, we got 'em.

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