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Cars The greatest rivalries in the car industry

19:10  28 october  2020
19:10  28 october  2020 Source:   autocar.co.uk

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a car parked in front of a building: MailOnline logo © Provided by This Is Money MailOnline logo

Citroen is slashing its prices – and its discounts – to make the cost of its cars ‘more transparent’ to customers in the UK whether they buy in a showroom or online.

Instead of customers having to haggle down inflated price, the French maker says it has reduced its published retail prices based on what customers usually pay on average after negotiating with salesmen.

The move also aims to protect the longer-term residual value of its cars – so they are worth more to owners when eventually sold on in the second hand market, and reduce monthly payments for those taking out PCP finance.

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And in another glimmer of positive news from Citroen, bosses say the super-company Ami electric vehicle looks likely to be sold in the UK.

a car parked in front of a store: Price slash: Citroen UK has launched a new initiative that's designed to almost eliminate the need for customers to haggle and help keep monthly finance payments low © Provided by This Is Money Price slash: Citroen UK has launched a new initiative that's designed to almost eliminate the need for customers to haggle and help keep monthly finance payments low

The British arm of the French car maker is introducing a ‘Fair Pricing’ initiative knowing that many buyers feel uncomfortable haggling.

Dealers will still have some discretion to offer a discount, but this will be far less than in the past.

It is one of a number of changes the car-firm is making under its new three year strategy called ‘Citroen Advance UK'.

The company said: ‘Key to the strategy is the move to fair pricing, which means reducing list prices and being transparent and upfront with the customer.

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The initiative is already in place, with the price of the RRP for the C1 city car been cut by £700 from £11,015 to £10,315.

The C3 supermini and C3 Aircross Compact SUV have also had their prices slashed by up to £1,175 and £1,775 respectively.

a car parked on the side of a road: Citroen has slashed the RRP of the C1 city car by as much as £700 © Provided by This Is Money Citroen has slashed the RRP of the C1 city car by as much as £700 a car parked on the side of a mountain: The C3 Aircross - a compact SUV designed to take on the Nissan Juke - will be listed £1,755 cheaper than it currently is in showrooms © Provided by This Is Money The C3 Aircross - a compact SUV designed to take on the Nissan Juke - will be listed £1,755 cheaper than it currently is in showrooms

The firm said the new pricing strategy will be effective across the full range from 1 December with buyers 'able to enjoy this fair and transparent pricing across Citroen’s entire model line-up'.

It noted: ‘The rationale behind this bold new approach is simple, it is about being transparent and trustworthy.

‘This long-term and fundamental change to the UK business model will see list prices across the model range reduced to new fair and transparent levels.’

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While Citroen will hope this will encourage more customers into its UK dealer network, the move could also spring a backlash from previous buyers who will question if they have overpaid for their cars.


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It also brings into question the pricing of new motors across the UK.

Citroen price cut: How it affects the price of its current model range
Model Today's Starting Price December New Fair Pricing Starting Price Change
C1 £11,015 £10,315 -£700
C3 £16,280 £15,105 -£1,175
C3 'C-Series' £16,280 £13,980 -£2,300
C3 Aircross £21,445 £19,670 -£1,775
C3 Aircross 'C-Series' £20,225 £17,000 -£3,225
C5 Aircross £25,655 £24,335 -£1,320
Grand C4 SpaceTourer £27,460 £26,210 -£1,250

As part of the strategy, Citroen has introduced a new and additional ‘C-Series’ range, which is aimed specifically at online buyers.

A new Virtual Showroom service offers customers the ability to book live walk-around tours of key Citroen models and to ask questions, prior to placing an order via the online store.

Citroen said: ‘New ‘C-Series’ models are offered with strong levels of standard equipment, a competitive fair price well below that of key competitors, and a five-year extended warranty for retail customers purchasing online.’

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The maker's UK managing director, Eurig Druce, said: ‘Our Advance UK strategy represents the next step as we continue to strengthen the Citroen brand in the UK.

'At the heart of our strategy are fundamental, long-lasting changes to the way we do business to serve our customers better, it is the strategy our business needs today, to thrive tomorrow.’

a group of police officers riding on the back of a car: The Citroen Ami has created it for urban areas. And you won't be able to go much further than the city, as the range is only 44 miles © Provided by This Is Money The Citroen Ami has created it for urban areas. And you won't be able to go much further than the city, as the range is only 44 miles

Ami likely to come to UK showrooms

In an exclusive interview with Auto Express, Druce also suggested that the ultra-compact Ami electric vehicle could be sold in the UK.

Having been granted quadricycle classification in France - partly down to its miniature dimensions of 2.41-metres long and 1.39-metres wide - it is already being sold in the manufacturer's home land and is being offered to teenagers in Paris as a safe alternative to public transport during the coronavirus pandemic

That's because its categorisation as a quadricycle means it can be driven by anyone over the age of 14.

a group of police officers riding on the back of a car: A line of Citroen Ami cars seen in Paris, France, available for hire in a range of funky colours © Provided by This Is Money A line of Citroen Ami cars seen in Paris, France, available for hire in a range of funky colours a police car parked in front of a building: The car is almost 8 feet long and 4.5 feet wide, which helps it fit into small parking spaces in busy and congested areas © Provided by This Is Money The car is almost 8 feet long and 4.5 feet wide, which helps it fit into small parking spaces in busy and congested areas

CITROEN AMI SPECS

Speed: 30mph

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Dimensions: 8 feet long, 4.5 feet wide

Range: 44 miles

Capacity: Two passengers

Charge: 5.5kWh lithium ion battery

Charge time: Three hours

Price:  £5,054

The vehicles are priced at around £5,000, though most are being leased for approximately £18 a month, after a deposit of £2,350.

Druce said it does come to Britain, it will be in left-hand drive form only.

The UK boss told Auto Express there was a 75 per cent chance of the Ami being sold to UK customers, and confirmed that discussions are going on with Citroen's head office in France to secure the vehicle's availability for the UK market.

He told the magazine that it was his intention 'in the next two to three weeks is to evaluate feedback from customers that they see with the cars here on home ground'.

The Ami is powered by a 5.5kWh lithium-ion battery that provides a driving range of up to 44 miles and a top speed of 28mph,

Charging from a conventional household plug takes just three hours.

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