Peugeot 508 GT the only option for Oz

Peugeot Australia has unapologetically launched a single variant of its 508 into the local market this week.

The mid-size Peugeot 508 GT hatch and wagon will compete with the likes of the Audi A4, Genesis G70, Lexus IS and Volvo S60/V60 with pricing from $53,990 (plus on-road costs), and will assist Peugeot in its move upmarket Down Under, it says.

Speaking to carsales.com.au at the local launch of the 508 GT Fastback and Sportswagon this week, Peugeot Australia managing director, Ben Farlow, said a conscious decision was made to focus on the aesthetic and to build desirability back into the Peugeot brand.

“We’re trying to re-establish what this brand is best at… the intersection of style and substance,” said Farlow.

“The aesthetic value of the brand is what draws people to Peugeot and that’s what’s been forgotten about for the last few years.

“Our thinking is that the 508 GT is the flagship model for the entire range, and by bringing that model only we’re able to re-establish ourselves in the best possible way.”

When asked if a single highly-specified variant would dissuade family buyers from the Peugeot 508 range, Farlow said that a diverse line-up was sometimes viewed as confusing by customers wanting a European badge.

“I think Peugeot, at times, has made the mistake of trying to introduce too many variants, and at the time customers got confused as to how to navigate a brand that today they don’t know as well as maybe they have in the past.

“We need to consider what it is the brand offers now, but also what it used to be known for. I think it’s more of a thought-out strategy: introduce this and then in the future, we’re more than open to introducing other models; but they'll be based on sales performance.

“It’s about design, it’s an aspirational product. For that customer, if the price turns them away for now, it might not in the future… but it won't change the fact that they’d love to own one, and that’s what’s most important for me right now: to build desirability back into Peugeot,” he said.

Peugeot currently falls behind its key rivals in every segment it competes in locally and Farlow admits the strategy behind the 508 won’t have customers knocking down it doors.

Farlow said Peugeot aims to generate desire in the 508 range by stocking one fewer model than it’s able to sell and reiterated that the French brand hopes to draw customers to the marque, grow the reputation of the brand and build sales in a more organic way.

“My [sales] expectations on the 508 are modest. The brand play, and the role that doing only a high-spec 508 GT demands, is to sell one fewer than people want,” he said.

“Even at this price point, I think it’s more than competitive… so I'd be surprised if customers shopping a European mid-sized sedan would be turned off by the price. It’s more than competitive.

“So don’t expect this to be on any sort of special offer, playing games, trading the card. This is about just surfacing it in the market and actually marketing it well. It’s not a big volume play for me.

“I don’t want to make the mistake of bringing in too much, and then actually not creating the demand. That devalues the product.

“The objective of Peugeot is to premiumise it at this time. This product deserves actually to be sold at price points that are worthy of the top respect that we see here, and we’ll look to premiumise as we continue to bring in better and better product.”

Check back soon for the Australian launch review of the Peugeot 508 GT Fastback and Sportswagon.