An international used car team has been created by PSA Group as part of its strategy to improve residual values across its brands. The used car business unit is headed by Marc Lechantre. It will focus on improving profit margins from used vehicles and increasing the volume of used cars sold. Its work will focus on handling corporate ‘buyback’ schemes, other vehicle returns from the fleet and consumer markets and generating increased demand in the used car sector for both physical used car sales outlets and online sites. As part of the programme, PSA Group is entering a strategic alliance with Aramisauto, the French online used car sales portal, which will allow the carmaker to offer financing, insurance, warranty and used car maintenance solutions to Aramisauto's customers. PSA Group will also market mobility solutions to the used car market through its new Free2Move brand. Carlos Tavares, chairman of the managing board of PSA Group, said: ‘Our goal is to virtually double our used car sales to 800,000 units by 2021 and achieve a four-fold increase in profit from the business.’ The strategy is part of a wider drive to improve residual value performance in the business. Recently, the new head of the Peugeot brand said he was placing improved residual values ahead of new car sales volume in its latest business development plan. Jean-Philippe Imparato, who took over the role at the end of July, said strong residual values were critical to the firm’s long-term competitiveness. He said: ‘If necessary we will adjust our production capacity but we will not throw away all the work that has been done in the past three to four years. My priority is residual value and the profitability of the Peugeot brand.’ The strategy is influencing the launch of new models such as the 3008, which has a profitability target instead of a volume target. Peugeot is also keen to improve its position in the fleet market and already in the UK it has changed its channel mix to reduce the volume of daily rental sales in favour of targeting end-user fleets.
Our regular automotive industry News & Insights are no longer being published on the Autovista Group Market Reports website.
Instead, you can now find the latest updates at our central Autovista Group website, home to our pan-European brands including Autovista, Eurotax, Glass's and Schwacke.
To stay up to date with rapidly changing market trends, we recommend signing up to our free Autovista Group Daily Brief which delivers our daily news stories directly to your inbox.
You can still find our in depth market reports here on the Autovista Group Market Reports site. Keep checking back as we have an exciting new report due to be launched shortly!