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PSA mulling on how to reorganize Peugeot and Citroen brands in China

2012-09-07

Following the merging of Dongfeng Peugeot and Dongfeng Citroën's business departments, PSA is considering what next steps to take to maximize sales in the Chinese market. According to a report appearing in the Beijing Times today, PSA's Asia Pacific branch may further reorganize the Peugeot, Citroën and luxury Citroën DS brands in China. PSA is reportedly currently in discussions with both the Dongfeng Peugeot and Changan PSA joint ventures to discuss the issue.
According to PSA Asia Pacific's marketing department, there is concern that the similar marketing positions of the Peugeot and Citroën brands in China may very likely lead to competition between both brands' products. Therefore, PSA is considering following the business model it has in Europe, where the sporty Peugeots are targeted towards younger buyers, while Citroëns are aimed more towards households. Any decision may lead to a large marketing change for both Dongfeng Peugeot and Dongfeng Citroën's product lines.
PSA also needs to consider how the luxury Citroën DS line, which made its Chinese market debut earlier this year, will play into the overall scheme of things. PSA allegedly worries that the current Chinese consumer base for DS models is too small, and hopes to reform the brand to target white-collar workers. However, Changan PSA officials denied the allegations, saying that there was no way the DS brand would become marginalized.
Dongfeng Peugeot General Manager Wei Wenqing commented on the issue, saying that his current work is to make the two brands more unique. However, he said that he had not heard of any announcement from PSA.

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