By on October 9, 2012

More bad news from PSA – production of the brand-new Peugeot 208 subcompact will be cut by one third, as PSA grapples with an imploding market for small cars in Europe.

According to Automotive News Europe, the 208 came in third place in the August sales rankings for Europe, behind the Volkswagen Golf and Polo, but even that wasn’t enough to help the small Peugeot succeed.

The 208 competes with the Volkswagen Polo, rather than low-cost cars like the Dacia Sandero, leaving it in a tough spot. The 208 is also built in France (though some units are built in Slovakia), leaving PSA exposed to uncompetitive labor costs and underutilized plants. While Volkswagen isn’t a low cost brand, they have massive economies of scale that PSA can’t take advantage of, and can weather the storm better.


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8 Comments on “Peugeot Already Cutting 208 Production...”

  • avatar

    Can someone explain to me why the Frwnch har not been as good as Volkswagen at expanding abroad? Is it that they waited too long? And if so, why? I know they used to have a hold on Africa, but then Africans needed vehicles that were more durable.

  • avatar
    el scotto

    Any European brand that doesn’t import to America will die.

  • avatar
    A is A

    Peugeot lacks a unique selling proposition (USP).

    * Do you want a premium(ish) car?. You buy a VW.

    * Dou you want a more “exclusive” (read expensive) VW?. You buy an Audi.

    * Dou you want a reliable and durable car?. You buy an Honda or a Toyota.

    * Do you want a “driver´s car”?. BMW.

    * Do you want value for the money?. Skoda.

    * Do you want value for the money with some design flair?. SEAT. Fiat.

    * Do you want bargain basement prices. Dacia.

    …even sister brand Citroën has a USP: Quirkiness.

    30 years ago Peugeots had a USP: Durable and good cars. I know because I owned a 205.

    Nowadays… I do not know what is the reason to buy a Peugeot.

    • 0 avatar

      Two years ago I bought a Peugeot 207 SW (station wagon) because it offered an 120 HP engine (the same one used in Mini Coopers) with Tiptronic. I’ve checked the offerings of VW group, Fiat, Honda (Fit), Toyota, and Renault. Neither of these companies offered something comparable price/performance-wise. In addition, I would have also had the option to buy the 207 as a hatchback and as a CC (drophead 2-seater) with up to 150 HP.

      Looking at the 208 offerings I would have to do with a 3/5-door hatch with a maximum of 95 HP, no Tiptronic available. Can’t see a reason to buy the 208, either.

  • avatar

    I think Peugeot simply don’t take markets outside Europe, especially emerging countries seriously enough. Peugeots have good name here in Indonesia, better known than even VWs, but they don’t have enough service centers, dealers, etc., hardly ever advertised, and they’re often expensive as they don’t have a production facility in one of the ASEAN countries (thus can enjoy much lower taxes and fees due to the free trade agreement.) These are the key to the Japanese maker’s success here. If you want to sell made in France cars for premium prices, then your market will be small.

    • 0 avatar

      I second that… no test drive unit for 208 till now! not even brochure or spec sheet or anything, they haven’t even confirm us the price!

      they need to get serious if they want to sell cars here. i hate to see myself taking my money to honda brio, really…

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