Peugeot’s 508 sedan and wagon will be getting additional derivatives as part of the company’s plan to boost the car's profitability. Jean-Marc Gales, PSA/Peugeot-Citroen head of brands, said that it is preparing to expand its product lineup with niche-market variants of mainstream models.
In an interview, Gales said that the brand will pursue this strategy with the 508 sedan and wagon because niche models can command significantly higher transaction prices than the original mass-market model. He believes that consumers are agreeable to paying a premium just to be given the chance to differentiate more.
As an example, he cited that a 3008 (compact crossover) is priced 3,000 euros higher than a 308 hatchback. However, Gales declined to divulge the likely variants of the 508.
The same strategy is being applied by Citroen, Peugeot sister brand, on the DS range, short for “Different Spirit.” Citroen introduced the DS4, a high-roof variant of the new C4 five-door compact hatchback, at the Paris show.
The company has yet to reveal the prices of the C4 and DS4 but in the subcompact segment, the DS3 sells for 15,400 euros, 2,400 euros more than the C3. Gales said the company expects to sell 200,000 units a year of the new 508 sedan and wagon.
Of this number, 120,000 units are expected to sell in Europe, 60,000 to 70,000 units in China, and the remainder from the other parts of the world.
Gales added that Peugeot doesn’t anticipate any growth for mid-sized vehicles in western Europe, while the segment is thriving in China, where it stands for nearly 30% of the total market. [via autonews - sub. required]