French carmaker Peugeot is celebrating a decade of doing business in South Africa by earmarking new models as well as a first-of-its-kind full maintenance plan on all new cars sold this year.

Peugeot is hoping to shake off a sluggish performance in Europe and has identified South Africa as the key entry point for its African revival. Peugeot South Africa manager Francis Harnie said the company’s global intent is to develop markets outside mainstream Europe. “Africa is central to this process, and with its strong presence locally, SA is set to play a pivotal role in this globalisation.”

While Tsunami floods caused havoc and product delays for many of the Japanese manufacturers, 2011 was an equally tough year for the French car maker. Promising models released in 2011 included Peugeot’s 508, which exceeded target by selling 128 000 units worldwide, and the RCZ selling 19 000 models worldwide.

The Peugeot 5008 was voted a top ten finalist for the 2012 Car Of The Year competition with the announcement scheduled for April. However despite these new model additions, sales have been particularly poor especially in Europe where market share has dropped by 0.5% against stiff competition and new market pressures. It was only Germany which reported positive figures with a 9.5% in growth.

Global market share for Peugeot went from 7.6% to a meagre 7.1%. In just ten years Peugeot has grown from a slender six model range and six dealerships portfolio to its current status of 11 models and 24 dealers. To complement the new strategy, Peugeot will continue to participate in the local S2000 rally series with the Peugeot 207 and recently signed a sponsorship deal with Gauteng-based soccer team Orlando Pirates.

New models expected for arrival in South Africa will further bolster appeal. The 4008 compact SUV and all-new 208 will add significant clout to a range of premium vehicles when they arrive in the first half of this year. Realistic targets ahead of 2012 will focus on changing consumer perceptions, adding consumer confidence and providing quality service.

One of the ways in which Peugeot hopes to achieve this is through the new warehouse which was erected in 2008 and promises timeous delivery of parts at a price comparable to the competition – as calculated by the annual Kinsey report. A further eight dealerships will be added during 2012 to further levels of convenience and drive sales of Peugeot’s most comprehensive model range.

Peugeot also announced that all passenger cars will carry a five year/100 000km full maintenance plan and a five year service plan. This should bring the French manufacturer up to speed with similar plans offered by Renault and Hyundai.

In addition all Peugeot passenger cars will come with five year roadside assistance. The full maintenance plan is optional on Peugeot’s light and medium commercial range but the five year 100 000/km service plan is standard on the Partner and Expert models.

New vehicles to the range and the much-emphasised maintenance plan forecast modest objectives for 2012. Peugeot hopes to increase market share by 1% in 2012 with a projection of 2% by 2015. Enormous pressure lies with the arrival of the 4008 and 208. Will they be enough to turn Peugeot’s profits around?