LONDON: Stellantis NV’s Peugeot brand is getting a boost from rising electric-vehicle (EV) demand, helping the nameplate emerge from quality issues that tarnished its image and drove away customers.
Among retail customers in France and Germany, EV orders made up more than half of the total for models like the 208 city car and 3008 sports utility vehicle in April and May, brand head Alain Favey said in an interview in Paris.
That’s an acceleration from around a fifth during previous months, he said, while demand for electric vans has also climbed.
“The acceleration of demand for EVs is sensational in these countries, which fortunately are key for us,” Favey said. “I’ve rarely seen such a radical shift in such a short time span during my career.”
EV sales in Europe are growing as more affordable models are available both from domestic manufacturers including Stellantis and Volkswagen AG, as well as Chinese brands led by BYD Co.
In both France and Germany, Europe’s largest market where a major new subsidy programme is in place, EV sales jumped more than 40% in April, according to the European Automobile Manufacturers’ Association.
Stellantis – a carmaking behemoth created by the 2021 merger of Fiat Chrysler and France’s PSA Group – has been reviewing its strategy in a bid to better allocate spending among 14 brands, many of which cater to the same European mass-market customers.
Peugeot is one of the winners from the review that was spearheaded by chief executive officer Antonio Filosa. The nameplate will, alongside Jeep, Ram and Fiat, receive the bulk of future investments.
Peugeot has “turned a page” after years battling problems with its PureTech engines, Favey said. Excessive cost cuts under previous management also impacted quality, damaging its image, he added.
The maker of Peugeot 208s also revived its partnership with Dongfeng Motor Corp this month, marking a shift after the French brand previously pulled back from China.
Favey presented two new concept cars at the Beijing auto show last month.
The Peugeots made in China, based on a Dongfeng platform and larger than the models sold in Europe, won’t be in competition with the European lineup, Favey said. — Bloomberg
