Reports have it that Citroen has decided to shut down operations in South Africa.
As circulated, the decision was inspired by the poor sales performance the French car maker recorded in the country.
It was reported that Citroen in 2015, only made a total of 789 sales in South Africa. The sales further dwindled in 2016 forcing the outlet to take the decision.
Meanwhile, Peugeot-Citroen South Africa (PCSA) will continue to serve its current customer base and honour warranties via its PCSA dealer network.
But then, the establishment will abandon the importation of Citroen manufactured vehicles like C4 Cactus, DS3, C4 Picasso and Dispatch Multispace.
Confirming the decision, PCSA clarified that Peugeot will continue operation in South Africa.
In a media statement, PCSA related that it held a strategy meeting with its entire dealer network, investors and stakeholders on Wednesday, 7 December, where the company’s five-year-plan was rolled out.
The statement highlighted that three key decision were upheld at the strategy meeting. They include:
- The focus from 2017 will be on the Peugeot Brand
- The re-launch of the Brand, will be kept within the PSA core values
- Three new products will be launched during 2017 (two of which will be SUV’s), with continued product introduction of at least one model a year from 2018 onwards.
Commenting, Managing Director, Francis Harnie asserted that:
“The entire plan is in line with the Push To Pass plan/strategy of the PSA Group.
It was confirmed that South Africa is a key market in the development strategy for the Brand in the Middle East/Africa region. Our challenge lies in developing a sustainable and profitable business model for all parties.
We will focus all our resources on retailing the Peugeot Brand which will assist in higher brand awareness, brand image, and increased competitiveness.”
He added that a full after sales and parts delivery service to Citroën and DS customers will remain a priority to ensure that those customers will not be neglected in any way.
“With a car park of around 15 000 Citroen and DS vehicles in South Africa, these customers are important to us and we will not let them down,” he stated.