Since it does not want to offer discounts on its latest model, Citroen launched its latest compact hatchback, the C4, with a low base price that carmakers say will leave little room for price reductions at dealerships.
This is a radical strategy for Citroen, which has been one of the most assertive discounters among Europe’s volume brands.
In France, the C4’s base retail price is EUR16,990 (about $23,310), compared with EUR16,390 for the Volkswagen Golf, EUR20,300 for the Renault Megane and EUR17,600 for the Ford Focus.
While the Golf’s initial price is slightly lower than the C4, Citroen says the C4 price is already a bargain as it offers technologies and design features for a very competitive price. Led by the Golf, the compact car segment is Europe’s second-largest after subcompacts.
The C4’s product manager, Jean-Michel Marmiesse says the C4’s price is aggressive from the beginning to rapidly find a niche.
However, industry experts say that giving buyer price reductions hurts residual values, an important factor for fleet buyers. The discounting also has an impact on Citroen’s image among buyers. [via autonews - sub. required]