Times flies when you’re having fun, so it’s no wonder that Peugeot’s ten-year anniversary in South Africa almost went by unnoticed. Yet despite low sales volumes and a less than stellar image in many a former Peugeot owner’s mind, the French manufacturer has done a remarkable job over the last ten years.
Upon its return to the South African market in 2002, Peugeot boasted with six models being sold through six dealerships – fairly modest local beginnings for a company that has been making innovative, stylish vehicles for more than a century. Initially, the public couldn’t seem to get enough of their funky small cars like the 206 and 307, two of the company’s core models. In fact, the 206 went on to sell more than 20 000 units in South Africa, with the 307 notching up a quite remarkable sales figure of 11 297 units. But while the cars were popular, the company’s image was severely tarnished by bad after sales service, a delays in parts supply and expensive repairs and servicing. To this day, many a former Peugeot owner would advise you to stay clear of the brand.
With more than 50 000 Peugeots on the road and 24 dealerships (2011) in South Africa, the company couldn’t afford to just give their dissatisfied owners a slice of cake while laughing at their woes. Instead, Peugeot made a concerted effort to address and resolve these problems. These steps included fixing the prices of parts and services on various models in order to make it easier for owners to plan for their vehicle’s maintenance, while a brand new 8 000 square metre parts warehouse was opened in 2008 to address concerns about parts availability. Parts delivery has also improved dramatically, with four daily deliveries to dealerships in the major centres.
But while these steps certainly contributed to more peace of mind for Peugeot owners, the brand’s image suffered severely. Even on this front, Peugeot has spent a lot of time, money and energy to regain the public’s trust. Mimicking their presence and success in global motor sport, Peugeot SA made a successful debut with two 207 models in the local S2000 rally, proving to a certain extent the quality and reliability of their vehicles in extreme conditions. The company also became the official vehicle sponsor of the Orlando Pirates soccer team, in the process establishing the brand in a market that isn’t necessarily focused on French design.
New Peugeot SA Managing Director, Mr. Francis Harnie, has spent the past six months studying the company and brand’s position in South Africa and has set ambitious targets for the coming year, targets that he believes is not only attainable, but would also dramatically change the way Peugeot is perceived. Visually, dealerships will be redesigned to reflect the company’s international corporate identity and another seven dealerships will be added, especially in areas where there’s strategically no Peugeot presence. The main focus now shifts to the customer and to quality of service, with a new sales-remuneration policy based on these elements already implemented countrywide. Two new Peugeot products will also make their way to South Africa in 2012 in the form of the new 208 (which replaces the 207) and the funky 4008 SUV, Peugeot’s debut into that segment locally.
The biggest benefit to consumers, however, is the announcement of a brand new 5-year/100 000 km full maintenance plan being added to all Peugeot passenger vehicles, from the entry-level 107 to the top-of-the-range 508. According to Harnie, this Peugeot Premium Plan (which covers service and maintenance and includes a 5-year/100 000 km warranty and five years’ roadside assistance) will address any concern a potential customer may have about expensive parts and servicing. Now, when buying a Peugeot, you will not have to worry about any invoices for the duration of the maintenance plan, only the cost of fuel and tyres will come from your own pocket, according to Harnie. While the prices of Peugeot vehicles did go up in January this year, it’s been marginal increases that accompany the products of just about every manufacturer represented locally.
This refreshed and ambitious approach to rectifying Peugeot’s problems from the past may very well be exactly what is needed to revive public interest in one of France’s oldest marques. In fact, I would not be surprised if several manufacturers follow in their footsteps within the next few months, especially if economists’ predictions of an even tighter year are proven accurate and consumers will need to get the most bang out of their car for the number of bucks they’re dedicating to such a purchase. Francis Harnie may very well be correct in saying that there’s no better time to drive a Peugeot.
- Christo Valentyn
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