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Location: By the sea, by the sea, by the beautiful sea
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Originally Posted by GeoffD
I would guess that Peugeot would work a deal with some other manufacturer to plug into their dealer network. It would be really expensive to try to establish a new set of dealerships.
I winter at a ski resort and summer on the coast. I want an AWD wagon with some towing capacity for boats, dump runs with yard debris, and occasional U Haul trailer rentals. I'd certainly take a look at a Peugeot 508 SW AWD wagon. In Europe, it has a 3,900 pound towing capacity. I doubt the diesel would make it here but it gets fantastic fuel economy with the diesel. If the price is right, the warranty is right, and there's enough of a dealer network in my driving pattern, I'd certainly look at it.
I think a hurdle they'll face is trying to partner with a successful brand, I don't think they'd be doing themselves a favor by partnering with a small 'boutique' brand. I remember in the '70s there was a franchised Kawasaki motorcycle dealer whose 'store' was two rental garages in a strip of them in Jersey City NJ and a franchised Renault dealer on a backroad in NJ that was little more than a converted gas station. Those days are gone with manufacturers now demanding multi-million $$$ palaces to sell their wares. Peugeot will need both a good product line as well as a very good marketing plan to convince profitable dealers to give showroom/lot space, parts department space, service space, as well as trained sales, service, parts, and warranty people to a 'new' brand (even though Peugeot is the 2nd oldest in the world). Years ago a 'hobby' dealer could survive in the US market, I have doubts that's still possible.
The only way a European-manufactured car can make it in the US is as a luxury car or luxury sport sedan with luxury car prices. The labor costs are too high to compete in the mid-market. Think Volvo, not Buick. In Europe, you can buy Mercedes, BMW, Audi, Volvo, etc in a base trim level priced competitively with other makes. I rent them in Europe. They're nothing like what you see in the US. Those cars don't ever make it to the United States because they're not competitive. You only see the top trim level in the US.
Yep and vice versa American cars cannot compete there due to fuel costs and emission restrictions/taxes.
You can buy a Mustang 5.0 but it would be crazy insane costs for petro and emissions taxes.
Yep and vice versa American cars cannot compete there due to fuel costs and emission restrictions/taxes.
You can buy a Mustang 5.0 but it would be crazy insane costs for petro and emissions taxes.
Interestingly enough, while Ford engineered the turbo 4 Mustang to accommodate the European market, last I checked the 5.0 was outselling it in Europe roughly 2 to 1.
- PSA has no SUVs or Pickups, so that part of the U.S. market is gone for them.
- So they need to compete on sedans. They do have some nice sedans, but people who want reliability but not much else (except for Mazda which do make exciting cars) will continue to buy the Asian brands. It will be tough for them to compete with the BMW/Mercedes/Audi cars, which are generally better engineered and more reliable than French cars.
- Their dealer network will likely remain small, and limited to larger metros.
- PSA has no SUVs or Pickups, so that part of the U.S. market is gone for them.
- So they need to compete on sedans. They do have some nice sedans, but people who want reliability but not much else (except for Mazda which do make exciting cars) will continue to buy the Asian brands. It will be tough for them to compete with the BMW/Mercedes/Audi cars, which are generally better engineered and more reliable than French cars.
- Their dealer network will likely remain small, and limited to larger metros.
I know some dealers have more than one brand they sell. I wonder if they can work through a Chrysler/Dodge/Jeep/Ram dealership now that they’re down to the Charger, 300, and Challenger for cars.
Peugeot has several SUVS. https://www.peugeot.co.uk/suv-range/
They're not particularly attractive or even weird, so I don't see a compelling reason to buy one over an established brand.
Peugeot has several SUVS. https://www.peugeot.co.uk/suv-range/
They're not particularly attractive or even weird, so I don't see a compelling reason to buy one over an established brand.
I never knew that. I don't recall seeing these over my dozen times in Europe. Perhaps Europeans aren't as big SUV fans as we are in the U.S., and they don't sell that many. The styling reminds me of Hyundai.
I never knew that. I don't recall seeing these over my dozen times in Europe. Perhaps Europeans aren't as big SUV fans as we are in the U.S., and they don't sell that many. The styling reminds me of Hyundai.
Just as in the US, CUV's are taking over representing almost 30% of sales in Europe last year.
Brings back memories - I had a lightly used Peugeot 604 sedan as my first car after my undergrad degree, way back when. At that time, it had a lot of advanced engineering features that were uncommon or unavailable on American cars, and Japanese cars will still not ready yet for prime time. It was comfortable and drove very well, on an entirely different level than American cars of that time (early 1980s), which were very crudely designed. Servicing the car was a major PITA. I don't know if Peugeots today will have the usual European levels of reliability (i.e. not especially reliable), but if they are more on par with the better Japanese brands, I'd be curious about them.
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