Why Peugeot, Reunault and Citroen should come in the U.S. Market (2)

I want to go on with the article I posted couple of weeks ago about Why Peugeot, Reunault and Citroen should come in the U.S. Market. I had a great comment of Andrei, who is working in the automobile industry in Russia, that drove me the will to explain further details on how it could work.

- About the dealer network: I must agree that establishing a dealers network is not that easy. This is probably the main problem. It is actually the main reason of the failure back in the 80s. But things have changed. Renault has already established some Nissan dealers on the US territory. Also, in the US, on the contrary of France, most of the dealers are selling not only one brands. For instance, you have some dealers specialized in high class European cars (BMW, Audi, Mercedes), and it would probably easy to place some models there.

- Concerning the lack of branding of French manufacturers, as you have said, they made a great effort on this point. I believe that French cars have been able to innovate in the market, and have enough brand power to get into the US market. I think that the fact US car brands are so weak nowadays force US consumers to seek new companies. And I also believe that Peugeot and Renault made great job by developping Latin America and Asian markets.

- About the product range, I think that French car has a pretty wide range of vehicle. Yes they do great small cars, and I believe this know how and expertise are the main key factor of success in case they decide to get into the US market. But they also have very elegant bigger cars, like the 607. The US market is attracted by small fuel efficient car to face both the gas price spikes and the traffic in town.

I am agree with you Andrei, this is not for now. Entering the US market implies a 3 to 5 years plan. Roma has not been built in a day. But this is the best time to think about it. Especially right now that the big historical US makers are in trouble and struggling to find their place in the market.

I highly appreciated your contribution as an expert of the car industry, and your comment show well that there are still a lot of questions to be asked, and problems to be solved. But this question is in the air of time.

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