New Citroen boss promises 1.5% ROS
26 September 2018
Citroen’s new managing director Karl Howkins is aiming to reverse the falling fortunes of the brand’s retail network through increased sales and better communication. However, Mr Howkins believes the network is currently “10-12 too heavy”, despite having a few key open points in areas such as Cambridge, Oxford and Reading.
Commenting on the worst performers within the Citroen network Mr Howkins said: “For the bottom 10% there is probably nothing we can do, they don’t want to work with us and we don’t want to work with them.” However, he added that he would help the rest of the network improve their fortunes.
At the start of this year Citroen reported it had 167 franchise points. This is now down to 158, according to PSA network boss David March. In the same period the average network return on sales has gone from just above break-even at 0.1% to 0.6%.
Mr. Howkins added: “Within two years I want the network to be at 1.5% return on sales.”
After three years of falling new car and van sales Mr Howkins said he was confident Citroen would increase sales this year and next through the introduction of several new key models.
* To read the full range of Mr Howkins plans, pick up a copy of sister publication Auto Retail Bulletin in October. If you’re not already a subscriber, click here for a free trial.