Too much Peugeot success

A 16-fold increase in sales in one month would normally be good news for any automotive brand, but Peugeot’s German operation has shown the door to three top managers after a low-key marketing joint venture turned into an unstoppable sales boom.

The sales campaign, which slashed prices of the Peugeot 208 hatchback by 40 per cent, was expected to lift the model’s monthly sales in Germany to 300 vehicles.

Back in Paris, the Peugeot bean counters budgeted according to that estimate.

But the operation, in partnership with Sixt Leasing and 1&1, saw up to 5000 208s leased at just €99 ($AU143.55) per month, including full comprehensive insurance and all road taxes.

In fact, the April campaign saw Peugeot virtually double the number of 208 sales it would normally expect in a whole quarter (2749 were sold from January to the end of March).

This incensed German Peugeot dealers, who refused to absorb their share of the loss-making deals, leaving the French parent company to take a massive financial hit.

Peugeot abruptly cancelled the campaign at the end of April, and gave marching orders to Peugeot Germany’s Head of Business-to-Business, Holger Boehme, Head of Leasing Business, Olivier Ferry and managing director, Benno Gaessler.