Peugeot Revival Takes Hold on EV Demand Surge in France, Germany
(Bloomberg) -- Stellantis NV’s Peugeot brand is getting a boost from rising electric-vehicle 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 program 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.
“Our Chinese partners want to go fast to introduce the new models,” said Favey. “We want to take a bit more time, to make sure these are real Peugeots, very different from what the Chinese brands typically do.”
The brand is set to introduce a total of seven new models by the end of the decade targeting sales of 1.5 million cars sold annually by then. That’s up from 1.1 million from last year.
These include a revamped 208 city car, due next year, that will be electric only. New technology will include features such as steer by wire, where a control unit electronically transmits driving direction to the wheels, as well as a rectangular steering control center inspired by videogames. Peugeot’s tech innovations could later get used by other group brands, Favey said.
Stellantis plans to invest more than €1 billion ($1.2 billion) in its Mulhouse car plant in eastern France, President Emmanuel Macron said this week. This will further reinforce the group’s presence in a region where Stellantis’ predecessor company PSA and the Peugeot brand trace their roots. The group already invested to modernize the nearby Sochaux plant, which in 2025 assembled 230,000 Peugeot 3008s and 5008s.
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