PSA to phase out Peugeot 807 and 207 Plus

Article by Christian A., on July 1, 2014

The Peugeot 807 large minivan will be phased out as part of plans by PSA/Peugeot-Citroen chief executive Carlos Tavares to dispose of unprofitable models from its product lineup. A Peugeot spokesman confirmed a report by Les Echos that the carmaker will not replace the 807 and that it would also phase out the 207 Plus.

Tavares is transforming the Peugeot brand to make it compete directly against the Volkswagen brand. He wants the brand to concentrate on smaller range to be able to command transaction prices as high as VW models. He intends to cut Peugeot’s lineup from 25 models now to 16 models by 2018 and to 13 models by 2022.

According to Les Echos, Peugeot models to be retained includes the 108 minicar; the 208 and 2008 subcompacts; the 301 sedan, 308 hatchback and wagon, the 3008, 408 and the RCZ; and the 508 and 5008 mid-sized models.

Jamel Taganza, an analyst at Inovev, it makes sense that PSA decided to phase out the 807 since demand for large minivans is dropping in Europe with customer shifting to crossovers. Peugeot only sold 836 units of the 807 in Europe in the first five months of 2014, a significant drop from 1,316 units sold in the same period in 2013, according to market researcher JATO Dynamics.

According to Taganza, Inovev expects Peugeot to phase out the unsuccessful 4008 crossover. A Peugeot spokesman, however, remarked that the company intends to retain the 4008.

Taganza expects Peugeot to introduce the new upscale 608 sedan and 6008 crossover in China. On the other hand, industry insiders expect Peugeot to phase out the iOn electric car and not to replace the 207CC and 308CC coupe-cabriolets. Arndt Ellinghorst, an analyst for the ISI Autos Team, quipped that the French carmaker has too much complexity in its product mix. [source: automotive news europe - sub. required]

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