CITROËN CELEBRATES ITS FIRST MILLION-CAR YEAR

For the first time in its history, French car maker Citroën delivered more than one million vehicles in 12 months with deliveries rising six per cent to 1,010,000 units in 1999.

Of this record breaking total, 30 per cent were for France and 70 per cent for export markets, of which 12 per cent were outside Western Europe.

For the third year running has, therefore, set a new sales record.

The marque also beat its 1998 production record with 996,000 units (up 3.8 per cent). The three highest volume vehicles were the Xsara: 305,000 units (up 4.5 per cent); the Saxo: 279,000 units (up 10 per cent) and the Berlingo: 132,000 units (up 14 per cent).

In Australia Citroën sales rose from 461 to 562 units, the third year running that Citroën sales have grown in Australia. Sales would have been higher had there been full availability of the Berlingo, with demand running well ahead of supply.

Five years of growth

Looking beyond the new record set by Citroën for the third year running, the Citroën also increased deliveries for the fifth consecutive year in 1999. Citroën grew volumes in all three market areas, with increases of 4.5 per cent in France, 5.0 per cent in Europe and 12 per cent outside Western Europe.

In Europe, market growth outstripped the forecasts made a year ago. Against this backdrop, Citroën was able to increase deliveries despite supply difficulties for a number of models.

A dynamic year of growth

There are several reasons for Citroën’s continuing increase in sales.

First, the new products in the range:

• In 1999, the Diesel HDi engines were in strong demand. Combining driving pleasure with fuel economy and performance, the HDi boosted sales of the Xantia, the Xsara and, in the second half of the year, the Evasion and the Berlingo…within the limits of the quantities produced.
• Buyers also gave a warm welcome to the new sliding side door on the Berlingo and also – towards the end of the year – to the restyled Saxo.
• The impact of the Xsara Picasso will only be seen on deliveries during the year 2000.
• The constant enhancement of safety and comfort equipment combined with the fall in average vehicle prices and the availability of new economical, environment–friendly engines have made Citroën products increasingly attractive to buyers.
• Favourable economic trends and low interest rates have made it easier to buy.
• At the same time, the network has successfully pursued efforts to adapt to modern sales and service requirements.

Citroën Service: continuous improvement

Customer loyalty is increasing as a result of the new service contracts tailored to requirements. In France, 27 per cent of customers buying new vehicles have taken out a contract of this type.

Citroën is continuing its quality assurance programme: five subsidiaries (Germany, Belgium, Switzerland, Austria, Slovenia) and 268 sales outlets are Iso 9002 certified. They account for 30 per cent of sales volumes in Europe and 50 per cent in France, where all branches are certified.

Surveys conducted within the network show that this ambitious quality programme has increased customer satisfaction.

Citroën’s sporting results

In 1999, the Xsara Kit Car consolidated the excellent results of 1998. For its second rally racing season, the Xsara Kit Car won nine races out of ten in France and eight races out of nine in Spain.

Citroën also secured two brilliant victories in the world rally championship (Tour of Corsica and Catalonia rally). As in 1998, Philippe Bugalski won the French championship and Jesús Puras the Spanish championship.

Citroën also continued to promote motor racing, offering several hundred young drivers an opportunity to practice this sport at a low cost and within a well organised structure (Saxo Cup, Saxo Challenge, Saxo Kit Car Trophy, etc.).

CITROËN IN WESTERN EUROPE

Deliveries, 17 countries (incl. France)	1998 volume	per cent	1999 volume	per cent	Variation 1999/1998
Citroën passenger cars (PC)	678,000	4.7	710,000	4.7	5 per cent
Passenger Car market	14,355,000		15,047,000		5 per cent
Citroën light utility vehicles (LUV)	161,000	9.5	171,000	9.5	6 per cent
LUV market	1,684,000		1,800,000		7 per cent
Citroën PC + LUV	839,000	5.2	881,000	5.2	5 per cent
PC + LUV market	16,039,000		16,847,000		5 per cent

In Europe, the Citroen delivered an additional 42,000 vehicles in 1999. Its market share has remained steady for several years at 5.2 per cent.

In 1999, the Citroen’s results improved steadily throughout the year. With the new products in the range, Citroën was able to finish the year with an increase of eight per cent over the last quarter.

• The Xsara grew sales by 8 per cent on a market that increased by 5 per cent, taking penetration from 1.7 per cent to 1.8 per cent.
• The Saxo saw strong growth in the last months and maintained its penetration over the year at 1.6 per cent. The production rate (almost 1,400 vehicles daily) is the highest since the Saxo was launched.
• The Berlingo passenger car doubled volumes from 22,200 to 45,800 vehicles, thanks to its sliding side door.
• In the area of utility vehicles, Citroën maintained its market share at a high 9.5 per cent, thanks notably to the 69,500 Berlingo utility vehicles delivered during the year.

In France, the market was highly buoyant and dynamic in 1999. It grew by 10 per cent during the year, with more than 2,500,000 registrations of passenger cars and light utility vehicles. Citroën deliveries increased by 5 per cent, as a result of the new products arriving in the range throughout the year.

Deliveries, 17 countries (incl. France)	1998 volume	per cent	1999 volume	per cent	Variation 1999/1998
Citroën passenger cars (PC)	225,200	11.6	237,200	11.0	5 per cent
Passenger Car market	1,943,600		2,148,400		10 per cent
Citroën light utility vehicles (LUV)	66,400	19.1	69,300	18.5	4 per cent
LUV market	347,100		375,400		8 per cent
Citroën PC + LUV	291,600	12.7	306,500	12.1	5 per cent
PC + LUV market	2,290,700		2,523,800		10 per cent

The Xantia increased diesel deliveries by 20 per cent. Diesel models now account for 71 per cent of the total, compared with 60 per cent in 1998. With volumes equivalent to those of 1998, the Xantia took a 13.8 per cent share of the M2 segment in 1999.

The Xsara grew sales by more than 6.5 per cent to take a 13.9 per cent share of the M1 segment. It is currently the most popular Citroën on the French market.

The Berlingo made a remarkable breakthrough, to quadruple its share of the passenger car market.

The Saxo took 8.5 per cent of the B segment. It is Citroen’s only model on a segment where most of the competition has two models. From September, the Saxo reaped the benefits of a well-received restyling operation.

The Xsara Picasso went on sale in December and received an extremely warm welcome from the network and customers. The launch campaign really starts this January.

Utility vehicles. On an LUV market that grew by 8 per cent, Citroen held on to second place with penetration of 18.5 per cent.

Service results. Complementing its maintenance, warranty and “service included” contracts, Citroën set up a new warranty contract operating on a subscription basis for a flat-rate monthly payment of FF 89. Aimed at private customers, the contract was an immediate success. It helped to increase in the percentage of service contracts on deliveries (26.8 per cent compared with 25.4 per cent in 1998).

The network increased its share of the Citroën vehicle maintenance and repair market from 56 per cent to 59 per cent.

Other European markets

In Spain, the PC+LUV market grew strongly in 1999 (up 19 per cent), Citroën set a new sales record with 203,200 registrations. The Marque took the No. 2 spot overall for the third year running and the No. 1 spot on the utility market for the sixth year running. With 84,400 new registrations, the Xsara is the second most popular car in Spain.

In Germany, on a market that remained stable, Citroën increased PC and LUV registrations by 10 per cent, taking penetration from 1.2 per cent to 1.3 per cent. The increase in sales of the Berlingo was particularly significant (9,600 vehicles, up 113 per cent) and helped to strengthen Citroën’s position on the passenger car market.

In the UK, Citroën’s market share remained stable (3.6 per cent). LUV registrations (6.2 per cent) rose by 15 per cent on a market that fell by 5 per cent.

In Italy, Citroën’s market share slipped from 2.9 per cent to 2.8 per cent even though Citroën increased its share of the LUV segment from 2.7 per cent to 3.3 per cent (up 18 per cent).

CITROËN ON MARKETS OUTSIDE WESTERN EUROPE

Deliveries to Citroën customers on markets outside Western Europe totalled 129,000 units, an increase of 12 per cent over 1998.

· In South America, where markets were on a downtrend, Citroën grew sales by 15 per cent with 15,000 deliveries.

In Mercosur, sales growth totalled 26 per cent on a market that fell by 11.6 per cent. Citroën delivered 11,7000 cars compared with 9,300 in 1998. At end November 1999, Citroën’s penetration stood at 0.6 per cent (6,000 registrations) in Brazil, compared with 0.4 per cent in 1998, 0.8 per cent in Argentina (2,800 registrations) compared with 0.5 per cent in 1998, and 6.3 per cent in Uruguay (1,100 registrations) compared with 4.9 per cent in 1999. Two models are particularly popular on these markets: the Xsara (assembled in Uruguay), which accounts for 83 per cent of sales in Brazil, and the Berlingo in Argentina, where it is produced.

• In Central and Eastern Europe, deliveries fell by 3.3 per cent to 35,000 units. Citroën’s penetration on the six main markets totalled 2.8 per cent at end November, compared with 3.1 per cent in 1998.
• In the Asia-Pacific region, deliveries grew by 29 per cent to 48,100 units (compared with 37,300 in 1998). In China, the ZX Fukang achieved excellent results. At end November, Citroën had 7.9 per cent of the Chinese market (9 per cent in the last quarter), compared with 6.7 per cent in 1998. Citroën increased registrations by 30 per cent on a market that grew by 11 per cent.
• In the other countries, deliveries rose by 13.3 per cent to 29,000 vehicles. In Turkey, which reported 2,800 registrations over eleven months, Citroën doubled its market share to 0.9 per cent.
• Citroën also made progress in Israel, increasing market share to 5.6 per cent (6,500 registrations) over 11 months in 1999, compared with 4.9 per cent (5,900 units) over the same period in 1998.
• In French overseas territories, deliveries grew by 8.9 per cent to 8,600 units. Over the first eleven months, the Marque took 11 per cent of the market.

For further information please
e-Mail Miles Williams - General Manager on
100250.3324@compuserve.com

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