[BigWords]

I recently read that the Peugeot 108 will not get a next-generation model. The reason is that the Peugeot 108 does not have a high enough profit margin. Other models will not be getting a next-generation model either. Most of those models are being nixed because their sales have not reached the expectations of the manufacturer. Here is the quote from auto-types.com:

Analysts estimate that the 3008, 5008, 4008, 207CC, 308CC, 807 models and the 108 will not receive replacements at the end of their lifecycle. While the 108 model will not be replaced because Peugeot wants to give up on low profit margin models, other designs will be phased out as a result of the fact that sales have not reached the expectations of the manufacturer and do not work enough into profitable segments.

So it seems that this will be the last Peugeot 108 to be manufactured for a while. Let's all cry a single tear for it.

http://www.auto-types.com/autonews/...-prices-to-volkswagen-models-level-11633.html

 

[Jorma]

well that could possibly all be a bit of babble talk! Consider that the 107 never got a follow up model, nor did the 106!

Peugeot is surely not abandoning the segment...

 

[versatile]

Even if it's correct, the 107 has had a 9/10 year production lifespan- with technology still advancing at pace, who knows what form small cars will take by 2025.

 

[BigWords]

I think its just about the margins. So if they can find a way to make a small car that has higher margins then I think it will happen. It'll be hard to do that though since I don't think that Peugeot wants to move down market at all, which is what I think they would have to do to raise their margins.

 

[kingston]

It's all about profit at the end of the day, likely they don't see it being something they can keep in production from much longer and keep it profitable.

 

[Jorma]

unless Citroen and Peugeot are about to split thier ways. They currently offer the same vehicles in the same segments at the same price points. This could be the point of divergence. Peugeot moves up Citroen stays down?

 

[BigWords]

unless Citroen and Peugeot are about to split thier ways. They currently offer the same vehicles in the same segments at the same price points. This could be the point of divergence. Peugeot moves up Citroen stays down?

I think that is the plan. Citroen is to be the more affordable and down market brand and then Peugeot is trying to move more upmarket. I think that sounds like a pretty good strategy too. No point on competing with yourself.

 

[Jorma]

I think that is the plan. Citroen is to be the more affordable and down market brand and then Peugeot is trying to move more upmarket. I think that sounds like a pretty good strategy too. No point on competing with yourself.

Oh is it actually! Interesting, I was just speculating, would you happen to have a link?

 

[BigWords]

While Peugeot will target the upper segment of the market, Citroen will become the mainstream brand of the PSA group, although it too will have fewer models.

This quote is from the link that I posted in the OP.