Dongfeng Peugeot decreases inventory, and more dealerships begin to make profits

Gasgoo.com (Shanghai August 16^th)--Dongfeng Peugeot faces a decline in sales volume, the first time in its past three years, in the first half of year. In fact, none of new models has been launched into market by Dongfeng Peugeot in the past 15 months.

Li Haigang, General Manager of Dongfeng Peugeot, saidto reporters that, Dongfeng Peugeot will launch six new models into market in the future 15 months, after 3008’s launching in July 12th. Apart from the establishing of Peugeot Avenue in Beijing Qianmen Street to promote its brand influence, Dongfeng Peugeot will also make innovation in its marketing and channel promotion.

“We have adjusted inventory in the first half of year, and a total of 10,000 units’inventory has been decreased in the previous seven months. The terminal selling price recovers consequently, and an additional10% dealerships begin to make profits in the first half of year, compared with Q4 last year.”Li Haigang said to reporters that, decreasing inventory will lower dealerships’purchasing costs and controlling terminal prices will increase their profits. “Dealerships’confidence is more expensive than gold.”

Apart from establishing their confidence, Dongfeng Peugeot will also try to lift their terminal competitive strengths through new sales branches. With the launching of new Dongfeng Peugeot 308 and 408, more dealerships will make profits. For new Dongfeng Peugeot 308, Li believes it suits all cities, from first-tier cities to six-tier cities, even counties. “We made great surveys in planning 308, and all equipment, designs will change with customers’demands.”He thinks that in the future 2-3 years, the model will be one of Dongfeng Peugeot’s best-sellers.

In the future 14 months, four other models will be launched,including 3 SUV models, 1 car product. Impulsed by new vehicles, Dongfeng Peugeot may recover its high growth.