Managing director of Peugeot and Citroen in Australia John Startari told CarAdvice extending Peugeot’s basic three-year/100,000km warranty was not a priority based on the brand’s current standing in the market.
“If you look at Peugeot sales numbers, it’s not required at this stage,” Startari said, alluding to the brand’s 4394 sales in 2014.
“It comes down to where we’re positioning the Peugeot brand at the moment. Peugeot itself is standing on the back of its product transformation. The first of those new products is the 308, and if you drive that car I think it changes a lot of minds … and I guess that’s a showcase of what we’re going to see in the future too.”
Startari said that, unlike with Citroen, there wasn’t strong demand from consumers for a longer warranty from Peugeot.
“They’re two different brands, two distinctly different business strategies.
“For the Citroen side, it’s a much smaller volume and our research showed that it was a key rejection in terms of the buying cycle in terms of the length of the warranty and that was going to have a large impact.
“Peugeot has other things, cost of service, hence we’ve introduced the five-year capped-price servicing program on the Peugeot side.
“We’d all like unlimited warranties. At the end of the day, we’ve got to draw the line.”
Startari would not completely rule out extending Peugeot’s warranty in the future, however, and said it, among other factors, would continue to be studied closely internally.
“You have to examine these things on a continual basis based on what your customers want and the benefit of that – because it does come at a cost – and where your competitors sits.
“If we feel we have to introduce an extended warranty, that will be analysed and a feasibility study will be done.”
Startari said he was focused on Peugeot and Citroen achieving organic growth in 2015, targeting gains of 10 per cent for both brands.
Achieving that growth target would push Peugeot above 4800 sales in 2015, while Citroen would edge up towards 1440, with most of the latter’s gains expected to come from the newly launched C4 Picasso.