Fleet News

Peugeot urges rival makers to 'stop distress marketing'

MANUFACTURERS must improve stock level controls to avoid distress marketing, fleet chiefs have been told. In the wake of another bout of so-called 'false' registrations by some manufacturers in August, Peugeot has called on rival car makers to effectively 'get their houses in order'.

Ford and Renault were at the centre of the row over August registrations and this week Peugeot managing director Dick Parham told an audience of 80 fleet managers: 'We will not engage in distressful sales activities.'

Amid across-industry concern - but particularly in the rental and bodyshop sectors - that distress marketing will impact on residual values, Peugeot fleet and leasing director John Taylor added: 'Peugeot Contract Hire has more than 53,000 cars on its fleet. It is the fourth largest leasing company in the country and every vehicle has a residual value guaranteed by Peugeot. It is in our interests to ensure that Peugeot brand remains strong.'

Nevertheless, the impact of distress marketing by just a couple of manufacturers - and industry insiders believe almost every manufacturer is involved to a greater or lesser degree - will affect residual values across the market place. Taylor said: 'If one or two manufacturers flood the market that affects everyone. They must plan their stock levels better and we need all manufacturers to take that view.'

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