Automotive News Europe - February 16, 2009 - 8

PAGE 8 · www.autonewseurope.com February 16 , 2009 Citroen to dealers: Help us Carmaker wants retailers to support global rollout of new corporate identity Lawrence J. Speer Automotive News Europe PARIS Citroen says its dealer network must play a major role in a new global rebranding campaign. The French automaker has called on its 3,300 dealers to overhaul 8,000 sales and service centers worldwide during the next five years. Dealers are also being asked to implement new service standards aimed at boosting Citroen’s customer satisfaction and quality ratings among car buyers. (See box) “We are going to ask our dealers to make a real effort, but we’re going to take a pragmatic approach for the evolution of our existing showrooms,” Citroen Marketing Director Xavier Chardon said during a presentation of the rebranding initiative here earlier this month. Citroen estimates dealers will invest ¤100,000 to ¤150,000 per-site to meet the new standards. Dealers building new shops will be held to even higher levels of brand identification. The campaign comes as most dealers are struggling to survive the global economic slowdown. Citroen says it realizes that its retailers are under Bosch CEO sees stable second half Guido Reinking Automobilwoche STUTTGART The stimulus programs in industrial and developing countries will yield results later this year, says Robert Bosch CEO Franz Fehrenbach. There is a chance that “the global economic outlook will stabilize in the second half of the year,” he said. Nonetheless, global vehicle production will decline about 10 percent in 2009. As the world’s largest auto supplier, Bosch is especially affected by the industry crisis in Europe, the US and Asia. Bernd Bohr, the head of the company’s automotive technology division, says his unit’s business fell 25 percent in the fourth quarter of last year. Overall, the company fears there will be a painful revenue decline in the first half of the year. Fehrenbach said it will take “great effort to keep our profitability halfway stable at a low level .” Bosch hopes it won’t slip into the red despite the worst economic decline in Germany’s postwar history. In view of the uncertainties, Fehrenbach said he didn’t feel in a position to make a more precise prediction for 2009. “Actually, we don’t currently have an approved business plan,” he said. The year 2008 was not very encouraging for the company. According to preliminary figures, Bosch group’s total sales fell 2.8 percent to ¤45 billion compared with 2007. The greatest decline was in the vehicle business, which was down 7 percent. Bosch ranks first on the Automotive News Europe list of the top 100 global suppliers with worldwide parts sales to automakers of ANE $36.16 billion in 2007. Citroen estimates dealers will invest €100,000 to €150,000 per-site to create sites that look more like this. pressure and that is the reason the automaker is giving dealers five years to make the upgrades. The plan calls for dealers to roll out Citroen’s new corporate identity, putting the spotlight on an updated logo and a new red and white color scheme designed to modernize the French brand. during a road show aimed at the brand’s 450-member French dealer network and 1,800 sales and service agents. Beyond the showrooms, Citroen wants its new Creative Technologie slogan and revamped chevron logo to appear on everything from dealer letterheads to sales staff ’s business cards. “Within a year, every single site should have a well-defined project underway for rolling out the new identity,” Favey said. Citroen also hopes to boost its image, which Chardon says has been driven by the cars rather than the brand, by radically improving how it treats potential buyers and service customers. Harmonized training programs and implementation of so-called “lean distribution practices” should be a “win-win” for Citroen and its dealers alike, Favey said. The mid-term objective is to move the French brand into the top five for Retailer requirements Citroen wants its dealers to Welcome customers within 3 minutes Answer Web information requests in 2 days Systematically offer test drives Present formal, personalized sales proposals Meet delivery times Mail follow-up inquiries in 5 days customer satisfaction, Favey said. Citroen ranked ninth out of 25 brands in the J.D. Power and Associates 2008 customer satisfaction survey in France, but 20th out of 23 brands in the Germany survey and 24th out of 28 brands in the UK. “To get there, we need to put in place better procedures for greeting clients, for welcoming them, and for the kind of services we offer,” Favey said. “Dealerships are going to have to come up ANE to the level of the products.” More unified message Whenever possible, dealers have been told to create open, transparent showrooms while clearly separating service centers behind a bright red exterior or interior wall. “We need to end the totally heterogeneous nature of the network, and move to“We are going to ask ward something more hoour dealers to make mogeneous, more standardized,” Citroen France mana real effort.” ager Alain Favey told AutoXavier Chardon, motive News Europe. Citroen marketing head Favey presented the changes in early February Latest Launches Toyota wants iQ to become an icon Designers take downsizing dream even further Wim Oude Weernink Automotive News Europe AMSTERDAM With seating for three adults plus one child within a three-meter overall length, Toyota’s iQ expects to set new standards in packaging in the mini segment. “It appeals to a trend of downsizing, not only of engines but also in overall dimensions. By being the first to do so, we want to make iQ a contemporary icon,” said Andrea Formica, Toyota Motor Europe vice president sales and marketing. “We did not want to be a basic car. Instead, we wanted to perform and behave like a big car, with basically no compromise in high-speed stability,” Formica added. The iQ introduces six space-saving innovations to help with packaging. It also has rear airbags to protect passengers during rear-end collisions. Denso helped develop what Toyota claims is the world’s smallest automotive air-conditioning unit. These innovations will be used in future Toyotas, Formica said. Selling the iQ will not be easy be- The basics Car: Toyota iQ Code-name: 630L Launch date: January 2009 Platform: Unique for the model Segment: Mini Main competitors: Fiat 500, Smart ForTwo, Mini Price: €11,800 (Germany) Where built: Takaoka, Japan Annual production: 65,000 CO2 emissions: 99g/km to 103g/km new to the dealer organization. They may know the iQ better than the dealers do, because they have informed themselves through the media and Internet,” Formica said. Toyota will promote the model outside the Toyota showroom, but not through traditional broadcasting. Formica also said that the iQ will be marketed “equipment-adjusted” in individual European markets. Toyota’s original plan was to produce an annual 100,000 iQs, 80 percent of which were to be sold in Europe. But the current economic conditions have forced the Japanese carmaker to cut its target to 65,000 units, but still with an 80 percent EuANE ropean allocation. Why did the carmaker decide to add this model? Toyota wanted to create an innovative product, in a new packaging. What is the target group? Affluent, eco-aware individuals who are new to Toyota. How will it be marketed? Toyota will avoid traditional broadcasting promotion but instead try direct marketing to potential customers. What new technology does the car have? Space-saving new technologies: under-floor fuel tank, slimmed seats, a smaller air-conditioning system, asymmetric seating, a front-mounted differential, central steering-box position. What do dealers think about the car? They love the concept, but the different customer profile could present a marketing challenge. What market influences does this car respond to? Demand for downsized fuel-efficient transportation in response to growing environmental and social public awareness. The new Toyota iQ combines innovative packaging with its small size. cause it is so different. Only the Smart ForTwo is shorter at 270cm overall. And the Smart is mostly directed at the entry-level commuter. By contrast, the iQ is relatively expensive, at ¤11,900 for the entry-level version that does not include air conditioning. Toyota believes iQ customers will likely be more prosperous than a typical small-car buyer. Instead, these status-conscious shoppers will seek sophisticated products and appreciate tailor-made engineering. Formica said that dealers liked the iQ from the outset, but are also aware that selling a lifestyle product would be different. “Such affluent customers may be

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Automotive News Europe - February 16, 2009

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