Citroen News

The Townsville dealership of China's Great Wall Motors is to have a new showroom. The Motoco Group, operated by Jason Collins and Alan Baxter, has confirmed its purchase of the former BP service station site at the corner of Bowen Rd and Balls Lane, Mundingburra, for $1 million.The firm will spend about another $500,000 converting the property into a showroom and car yard for the dealership, which it has operated for about four years. It will also sell Foton light trucks. Motoco dealer Jason Collins said the Great Wall team, which had traded almost opposite on Bowen Rd alongside its used car business, had earned its new location.“They should have their own stand-alone facility,” Mr Collins said. “We are consistently in the top 10 in Australia with Great Wall.” There are about 80 Great Wall dealerships around the country and the number is growing. It is one of the largest manufacturers in China, where the auto industry has exploded in recent years to become the world's largest vehicle maker.Work to fit out the new Townsville showroom has just began. “It will be gutted and turned into a showroom with a new glass facade and a modern awning,” Mr Collins said. He said they were confident about the prospects for business in Townsville despite a difficult market recently.“Townsville has been very good to this business,” Mr Collins said. “Talking to the Gold Coast dealers, they are still doing it tough and there's a general feeling that we have it far better in this area.” Peter Wheeler of Colliers International Townsville, who negotiated the sale of the 2233sq m property, said the purchase opposite Motoco's Audi Townsville Centre was a logical extension of their business.But with interest rates at their lowest levels for some 50 years, it was also a well-timed move. “Now really is the time to be buying. It's a good time to be getting into the market,” Mr Wheeler said. The Motoco Group which also operates in Cairns was formerly Honeycombes Cars. It has dealerships in Audi, Alfa Romeo, Citroen, Fiat, Great Wall, Peugeot, Winnebago and Millard. It is also involved in Rising Sun Marine and Townsville Suzuki Marine dealerships.tony.raggatt@news.com.au 

The sharpest knife is wielded by Proton, whose Preve sedan is now the cheapest small car in the country. Proton marketing general manager Billy Falconer says the cut -- which amounts to a 15 per cent shave off the original price -- is a reaction to the aggressive discounting of rivals.The flip is the annual/15,000km servicing cost is now capped for the first five years or 75,000km, rather than the free servicing as previously. "In order to compete with all these offers, we have reduced the price for the Preve range, with the manual starting at just $15,990 driveaway and the CVT auto Preve from $17,990 driveaway for a limited time only," Falconer says.The Preve is the first Proton to earn a five-star ANCAP safety rating and comes with a five-year warranty. The Malaysian brand is relying on the improved safety and features -- all Preve models have 16-inch alloy wheels, Bluetooth and iPod connectivity, and controls for the sound system and phone mounted on the steering wheel -- to help boost sales.The company sold just 856 vehicles last year and is behind that number year-to-date with 353 sales to July. A new hatch and people-mover -- both built according to Proton's improved safety standards -- are imminent.Ford's Focus Ambiente is -- for now -- just $18,990 on the road, including free servicing for the first three annual/15,000km check-ups. Mazda's $19,990 deal on the Neo includes a four-year warranty and three years' roadside assistance. A Mitsubishi Lancer ES with a front and rear spoilers, side skirts and alloy wheels is available for $19,990 driveaway until the end the month.PRICE WARModel                                November 2012     NowCitroen C4                          $22,990                 $20,990Ford Focus                         $20,290                 $18,990*Holden Cruze                      $21,490                 $19,490Mazda3                              $20,330                 $19,990*Proton Preve                       $18,990*                $15,990*Mitsubishi Lancer                $19,990                 $19,990**denotes driveaway pricing

Yet another reduced price offering from a European car maker - this time the iconic French marquee, Citroen, with one of its C4 variants. ENGINE Fuelled by the ever increasing car sales strength in Australia, the rise of our dollar and the moribund nature of the European auto market, Citroen is offering its C4 Seduction 1.6L e-HDi Diesel EGS (is that the most complicated car name you've ever come across…) from a mere $25,990 driveaway. This is a saving of $2000 on the previous recommended retail price. On-road costs had to be added to that old price, pushing it close to $30,000 in many areas. Citroen C4 Seduction 1.6L (etc) is powered by a direct injection turbo-diesel engine that features the company’s Stop & Start system. This puts the engine into idle mode as the driver decelerates and turns it off when the C4 comes to a stop. The moment the driver takes their foot off the brake, the engine restarts, doing so with a minimum of the irritating vibration that can be a pain in some four-cylinder cars with a stop-start setup. Citroen tells us its Stop & Start helps reduce CO2 emissions by about five grams per km. Even better, fuel consumption is pulled down by 15 per cent in heavy-duty city driving. The 1.6 turbo-diesel engine is mated to an Electronic Gearbox System (EGS) automated manual gearbox that provides either full automatic shifts, or manual changes via the steering wheel mounted paddles. STYLING The pretty little Citroen C4 hatch has the company’s distinctive front end with the interlocking gears that form the company’s logo. But it has to be said the rest of the vehicle doesn’t really create any excitement in its shape. Citroen C4 is a five-door hatch that has good interior space for four adults, five without a huge amount of rubbing together. It provides a comfortable ride. It is neatly balanced and will appeal to those wanting to get clear of the competent but boring Asian range of cars. SAFETY Even this low-cost Citroen comes as standard with driver assistance technologies that include ABS with Electronic Brakeforce Distribution (EBD), Emergency Braking Assistance (EBA), intelligent traction control and Electronic Stability Programme (ESP). Should these primary safety items not save you from having a crash the C4 is fitted with six airbags (driver, front passenger, side and curtain). The drive-away offer for the Citroen C4 Seduction 1.6l e-HDi Diesel EGS is available until June 30, 2013. But only while stocks lasts, so it might be a good idea not to tarry overmuch if you’re interested in something different in the small car field.

Spied lapping the German circuit with disguised Chevrolet C7 Corvette, Camaro ZL1and Z/28 development mules, the right-hand-drive SS V Ute looks to be undergoing final evaluation ahead of its launch in June.Curiously, no VF Commodore Sedan or Sportswagon variants were sighted, despite Holden’s pledge to launch all body styles simultaneously.Holden, with parent company General Motors, has used the 20.8km Nordschleife circuit extensively for chassis tuning and evaluation since developing the VE/VF Commodore and fifth-generation Camaro’s shared Zeta platform in the early noughties.Several other manufacturers have taken advantage of the spring weather at the circuit in recent weeks, but this Holden/Chevrolet convoy was captured by Dale Lomas of Bridge to Gantry.

The two great looking new Citroens are under consideration as the French brand looks to win converts down under.The five-seater C4 Picasso has re-emerged as a likely starter for families while the DS Wild Rubis concept tops the wish list after its unveiling for the Shanghai motor show.The compact Picasso was originally dismissed in favour of the seven-seater Grand Picasso people mover that's already a long-term member of the Citroen family here, but has re-emerged as contender following a body update.The Wild Rubis is only a long shot because its development is focused on China, but Australia's plan for a DS-driven sales push means it would be a natural if it is available. "We want to build the brand and that means we're looking at everything," the head of Citroen Australia, John Startari, tells Carsguide.Citroen has just re-launched under a new distributor and plans to grow its sales by 35 per cent in the short term, with double-digit improvements over coming years, based on the strengths of the French cars. Startari says he was very impressed when he saw the C4 Picasso in Paris and has launched an investigation on its suitability for Australia. "It's not something we should discard, because there are significant changes."I saw it in France last week and it's on-brand," he says. "We don't have pricing yet, and that makes it harder, but it was a definite no and now it's a possible."We still haven't made a final decision, but I guess it's the inclusion of a lot of technology and the styling of the car that merits investigation."The Grand Picassos has already had an update with styling along similar lines."Included in the Picasso update are a 'loft-style' cabin with added space, twin touch-screen displays, park assist, active seat belts and even ultrasonic blind spot monitoring. Startari believes the Wild Rubis would have a surefire hit in Australia but is not confident it will be built with right-hand drive."I think it's a very exciting prospect. Coming out of China would mean that it's left-hand drive, so we'd need a business case for right-hand drive. And the largest right-hand drive market is the UK."The stylish SUV is clearly intended for DS production, although its 21-inch alloys and plug-in hybrid driveline might struggle for showroom approval. Citroen says it "points to a future DS SUV" and it's likely the concept will be transferred to the road within two years, with its basic 4.7-metre bodywork unchanged.Still, Startari is not getting over-excited. "We really have no information yet on the Wild Rubis. I cannot speculate because nothing has come through officially," he says.But he is looking forward to delivering an expanded Citroen range to Australian buyers. "It's great to be part of something that has this ability to do things differently. Cars are being traded as commodities now, regardless of the brand, and people are looking for something different."There is a relevant, visible point of difference at Citroen. And that's refreshing, as well as giving us the opportunity to do something different."This reporter is on Twitter @paulwardgover

French automaker PSA Peugeot Citroen revealed an air-hybrid drivetrain at a French tech day in January, and now it looks like the system is heading a step closer to the real world. The revolutionary technology, which is essentially a hybrid drive system that instead of using electric motors to support an internal combustion engine, uses compressed air, will be appearing at the 2013 Geneva Motor Show next month. It will feature in a Citroen C3 subcompact, which its makers claim is capable of returning a fuel economy of 3.4L/100km thanks to the technology. In addition to being much more fuel efficient than comparable gas-electric hybrids, and even some more advanced plug-in hybrids, the Citroen C3 Hybrid Air concept is said to be lighter and much cheaper to produce as there are no heavy and expensive batteries. It also operates at a constant level of efficiency, regardless of weather or driving conditions. The technology was developed by PSA Peugeot Citroen in cooperation with automotive supplier Bosch and draws from the Citroen brand’s historic expertise of hydraulic systems for cars. Citroen, of course, used pressurized air and hydraulic systems to manage the suspension, steering, braking and semi-automatic gearbox of the legendary DS as far back as 1955. The automaker also showcased one of its original 2CVs fitted with a hybrid setup that combined a gasoline engine and similar pressurized air and hydraulic system in 1958. Given the concerns about fuel costs and the environment, the French automaker is now investigating the use of the technology once again. The latest setup combines a gasoline engine with a compressed air storage unit, a hydraulic motor and an automatic transmission with an epicyclic design. An intelligent electronic management system manages input from the driver to optimize energy efficiency with three operating modes: Air Mode, Gasoline Mode, and Combined Mode. Optimising energy efficiency in this way cuts fuel consumption and allows the system to recharge the energy storage unit with compressed air, using regenerative forces to suck in air and compress it for later use. Air Mode is used for driving around town, at speeds of up to 69km/h. Here, the gasoline engine is not used.  The compressed air is transmitted to the wheels via the hydraulic motor and gearbox. Depending on traffic, this mode will be active between 60 and 80 percent of urban driving time. Maximum use of deceleration and braking energy will ensure efficient recharging of the compressed air unit. Gasoline Mode is used mostly on the highway or if there is no more compressed air. Again, the energy from deceleration and braking is recovered for use when in Air Mode or for the boost function in Combined Mode. Finally, in Combined Mode, the gasoline engine and hydraulic motor work together. This mode is used particularly during initial start and strong acceleration. If further tests prove successful, PSA Peugeot Citroen hopes to have the first production applications ready by as early as 2016. Note, its makers claim the technology is only suitable for cars in the subcompact and compact segments. www.motorauthority.com    

French car followers are being promised a new deal, including more chic DS models, as Citroen enters a new era in Australia. Value will also be boosted across a nine-model lineup that's withered down under since the global financial crisis. Citroen showrooms will become more like a new-car boutique, with a special emphasis on the DS models including the upcoming DS3 cabrio. "We want to make Citroen stand out. It's not just a commodity brand," says John Startari, who heads the French brand for newly-appointed distributor the Sime Darby Motors Group. "We also need Citroen to be more relevant. So we're rationalising the lineup and increasing the competitiveness." Only 1702 Citroens were sold in Australia last year and, although Startari point-blank refuses to talk numbers, the target from France is obviously more than 2000 cars in 2013. That should finally mean a C3 price leader instead of today's $23,990 starter car, priced more in line with rivals like the Toyota Corolla that start at $19,990. The DS5 is also set for a bigger role, playing in a size and price class where Citroen wants to stand out from a huge range of rivals including the Ford Mondeo, Hyundai i40, new Mazda6 and even the Peugeot 508. "Australians really don't know about DS. I think there is an untapped demand for those cars, which are like the Mini," says Startari. "All the DS cars are here now, but they haven't really been pushed. It's about telling people what they are and what they can do. And building up the package that goes with them. "Our halo car is the DS5. It is already here but has never had a proper Australian launch. "So we are starting virtually with a clean slate in June.  The price won't come down but there will be better value." He also confirms the DS3 cabrio without getting any more specific on timing than "later this year" for its showroom arrival. Citroen's decision to switch its agency from Ateco Automotive to Sime Darby is, says the ex-Proton chief, a major opportunity - for both the brand and its buyers.  "Citroen should be more of a premium brand. The cars are good but people haven't been told about them," Startari says. "There are too many variants. That will be reduced. I think we will be one of the success stories this year. We can make Citroen stand out."  

On a shiny black stage at the Paris motor show this week, start-up Exagon Motors displayed its baby: The Furtive eGT, France's most luxurious automobile.Exagon executives brag their E400,000 ($501,000) hybrid comes with customisable leather interior, rigid carbon-fibre frame and body, and two powerful electric engines. But, while rich on technical prowess, Exagon's vehicle is missing an element that traditionally surrounds luxury goods: a legacy.Despite France's long list of luxury brands, from Veuve Clicquot to Chanel to Falcon business jets, the country has struggled for more than a half century to break into the luxury car market that is now dominated by a quartet of German auto brands: BMW, Mercedes-Benz, Audi and Porsche.“In France, which is, after all, the country of luxury goods, there is a big hole in the automobile sector,” says Exagon chief executive Luc Marchetti, who owns auto racing team Exagon Engineering. The company has orders for 60 vehicles and hopes to begin deliveries early next year.Marchetti isn't alone. France's biggest carmakers Renault and Peugeot Citroen are eager to put an end to a prolonged absence from the luxury segment that has left them vulnerable to the region's slowdown. Their mid-range vehicles are under a two-pronged attack by premium brands such as Mercedes, which is moving downmarket, and by new Asian rivals aggressively expanding in Europe.The result is a squeeze on profits that is hitting mass-market suppliers the hardest. In the first half of this year, for instance, Porsche had an operating profit margin of 18.7 per cent. By contrast, Renault's automotive division was barely profitable and Peugeot Citroen's automotive division was deeply in the red. French carmakers are trying to find a way out with a new luxury recipe.“To be on premium car buyers' shopping list, your brand must be positioned high enough, and to elevate your brand you need to be selling high-end cars,” said Frederic Saint-Geours, head of brands at Peugeot and Citroen. “We're trying to jump-start such a virtuous cycle.”As part of their new push into luxury, Peugeot is upgrading dealerships with a more exclusive experience; Renault is digging into its portfolio to see what old brands might appeal to luxury-car buyers; and in some cases both companies have consulted with major fashion house designers for advice.The results of those efforts are on display this week at Paris's auto show. Last week, Peugeot showed a new, convertible version of its successful DS3 sub-compact, one of a new series of DS prestige cars that it hopes will pull its Citroen brand upmarket. The company has sold 250,000 DS cars since their 2010 launch. Renault, meanwhile, is close to a decision on reviving with a partner its Alpine sports car brand. 

Factory closures are becoming increasingly probable after European car registrations fell to their lowest level in 22 years last month. The European Automobile Manufacturers Association (ACEA) notes the sales slowdown is accelerating and now predicts a slump of up to 10 per cent for the year.In all, just 688,168 new vehicles were registered in August, the lowest total for the month since the EU data was first compiled in 1990. With some factories already running at 50 per cent of capacity, there is talk of Fiat, Ford and Opel closing the doors on some of their most unprofitable production lines.“Something needs to give,” Fiat CEO Sergio Marchionne said last week, adding that Fiat will outline a blueprint for the “European challenge” when it releases third quarter results later this year. Ford was the biggest loser in August with sales down by almost a third on the previous year, a fact it attributes to a decision not to match rivals discounts during what is traditionally the slowest car sales month on the EU calendar. “There was a lot of short-cycle business and heavy incentives that we decided largely to refrain from, Ford of Europe's marketing chief Roelant de Waard says. The Volkswagen Group's massive product portfolio made it one of the few carmakers to increase sales, led by Audi increasing its share of the luxury car segment. In contrast, Opel/Vauxhall saw a 19 per cent fall in registrations, Fiat was down 18 per cent and both Renault and Peugeot/Citroen were hit with 13 per cent drops. Registrations by country largely reflect those hurting worst from the sovereign debt crisis. Greece and Portugal lead the way with falls of 40 per cent year-to-date, Italy is down by almost 20 per cent and Spanish registrations fell by 8.5 per cent. Ominously for France, registrations this year are down 13.4 per cent, while Germany, which accounts for one in three of all cars sold in Europe, has seen its market contract by 0.6 per cent. The French Government has fiercely resisted factory closures on its turf and criticised Peugeot last month when it announced it would shed up to 10,000 jobs and close a factory in the north of the country. That's not an option for Renault, with the government holding a controlling stake in the French carmaker.