Internet Sales, the Next Big Thing for Renault's Dacia and PSA’s Rumored Simca Budget Brands

A low-cost company has to find low-cost ways not only to produce, but also to market and sell its products. This is why Renault devised a strategy to sell Dacia models online, through an Internet sales program that will be implemented in Europe.

“Internet sales will quickly become a reality. Many of our customers know what they want before they step into our showrooms, so an online sales channel makes sense,” said Gerard Detourbet, head of Renault's low-cost program.

But that isn't the only reason. Renault will be soon facing the threat of a low-cost rival coming from the French group PSA Peugeot-Citroen. Rumored to receive the abandoned Simca name, the new make could sell its vehicles exclusively through the Internet, as sales chief Jean-Marc Gales hinted at the Geneva Motor Show.

According to Gales, the cars will be built outside Western Europe, possibly in China, and could bring a higher profit margin for PSA than any other low-cost car manufacturer has managed to obtain until now.

"They're all selling cars at lower prices through the same high-cost distribution system that hasn't changed in 90 years. What we're talking about is a radically new approach to car distribution," said Gales. He added that cars will be sold exclusively through the Internet, with test-drive vehicles being offered through rental firms.

In doing so, PSA will not only increase profits, but will also avoid potential damage to the Peugeot and Citroen brands by keeping low-cost cars away from the showrooms.

By Dan Mihalascu

Source: Bloomberg

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Citroën to Show DS4 Purple, C3 Red Block and C6 Noir et Blanc Concept Models at the Geneva Salon

With the 2011 Geneva motor show only a week away, Citroën has published photos but very few details on three new concept cars based on the firm's production models that it plans to reveal on March 1. The design studies are the C3 Red Block, DS4 Purple and the C6 ‘Noir et Blanc’.

Starting with the C3 Red Block, the French firm's supermini sports a bespoke matt grey paintjob with red accents on the window line and the 17-inch alloy wheels, plus smoked headlamps and tail lamps, a lowered suspension, and unique interior trim highlighted by the red leather seats, aluminum accents on the steering wheel, door panels and center console, and what the company describes as a "3D Bulldog carved dashboard".

Set to make its debut alongside the final production version of the high-riding DS4, will be a design study called the DS4 Purple, which according to Citroën, "takes inspiration from the techniques of jewellery craft".

The third and final concept is the C6 ‘Noir et Blanc’, which is a study on new colors and materials for the firm's range-topping model.

We'll have more details on Citroen's trio of concept cars at the Geneva Salon next week.

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Citroen C3 Picasso Recalled in the UK because the Brakes can be Activated from the Passenger Side!

Citroen announced it will recall over 20,000 C3 Picasso models sold in the United Kingdom for a rather unusual reason. It seems that the car's brakes can be activated accidentally by the front passenger when pushing their feet into the footwell! The discovery was made by a BBC TV show called Watchdog that was alerted about the problem from a cleaning company owning three C3 Picassos.

The reason for this malfunction is a manufacturing flaw occurring in France during the right-hand drive assembly of the C3 Picasso for the UK market. Even though the brake pedal is switched to the right, it remains connected to a mechanism on the left passenger side, BBC's Watchdog explained. It was discovered that the mechanism was covered only by a thin piece of felt, and that it could be easily activated by the passenger’s feet.

"It's potentially very dangerous indeed because the passenger wouldn't know he's the one activating the brake. The driver wouldn't know what's going on, and the people behind wouldn't know what's going on,” said motor engineer expert Mark Brown, who closely examined the cars.

The British program tested two C3 Picassos on sale at dealerships in the UK and found that both featured this problem.

In response, Citroen said there had been no reports of this problem before the Watchdog show, but said it will issue a recall action. "The recall will require the fitment of an additional component to isolate the braking mechanism from the front seat passenger," the company announced in a statement, adding the modification will be free of charge at Citroen dealers.

By Dan Mihalascu

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