6th June 2000

Citroën makes a good start to the year

§ Half way to annual target in four months

§ Citroen Berlingo sales up 84 per cent

§ 100,000 Picasso orders taken in 4 months

Despite selling more than a million vehicles in 12 months last year, Citroen is not resting on its laurels in 2000 with plans to sell and extra 100,000 vehicles this year and the first quarter results show the French marque is well on target.

Citroen is almost half way to its target after just four months of the year.

Strong growth in the first four months
Citroën's sales figures for the first four months of 2000 rose sharply. Citroen delivered 395,000 vehicles, including 138,400 Xsaras, 104,500 Saxos and 53,000 Berlingos. This was an increase of 43,700 units over the preceding year. The geographical breakdown of this figure shows 33,200 more deliveries in Western Europe and 10,500 more elsewhere in the world. The increases by model were 31,000 for the Xsara, 12,000 for the Berlingo and 3,200 for the Saxo.

Market trends during this period varied from one region to another, with moderate growth in Western Europe and Latin America and stability in China and Central Europe.

Western Europe
Initial estimates give Citroen car and Commercial vehicle penetration of 5.6 per cent, compared with 5.2 per cent in 1999. Registrations were up 11 per cent for cars, well above the market's 2 per cent, and 9 per cent for commercial vehicles, compared with 7 per cent for the market.

Citroën explains the growth by saying it offers car buyers appealing vehicles, particularly in the segments where growth is strongest:

§ Compact people-carriers, where the successful launch of the Xsara Picasso is boosting sales

§ Diesel cars, with an increasing number of vehicles equipped with the HDi diesel engine (The proportion of diesel cars on the European market rose from 26 per cent to 31 per cent during the first quarter. Citroën is benefiting from this trend thanks to a new generation of high-performance, clean-running engines.)

§ Multi-purpose vehicles, with the Berlingo (+84 per cent)

§ Light commercial vehicles, with an extensive, up-to-date offering.

Last, market response to the restyled Saxo, which came out in late 1999, has been very positive.

On major European markets
§ In France, Citroën's strong early-year performance continued in April. Registrations were up by nearly 17,500 vehicles for the first four months, and market share was 13.5 per cent, compared with 12.3 per cent in 1999.

§ In Spain, Citroën was the second-ranking marque in the market and number one on the commercial vehicle market in the first quarter, with leadership positions for the Xsara on the car market and for the Berlingo on the commercial market.

§ In Germany, the Marque increased deliveries by 11 per cent, despite the continuing steep downtrend (-10 per cent) of the market.

§ In Italy, registrations rose by 23 per cent on a market that grew by 7 per cent. The success of the Xsara Picasso boosted registrations for the Xsara range by 50 per cent, a performance matched by the Berlingo. § In the UK, the proportion of diesel vehicles remained steady, at 13 per cent. Citroën is expecting sales to grow with the launch of the Xsara Picasso in May. Citroen is posting good results in the commercial market.

On markets outside Western Europe
Deliveries rose by 29 per cent, to 46,700 units.
In Central Europe, deliveries were up 19 per cent. Results were especially good in Poland, Hungary and Croatia.

In Turkey, deliveries jumped from 500 to 2,700.

Gains were recorded in Latin America, too, with Citroën improving its positions in Brazil and Argentina.

In China, total registrations for the four-month period increased from 7 per cent to 9.2 per cent of the market.

These excellent results add up to sustained activity for the Group's plants. They are demonstrating their ability to adjust to the demand and are achieving record production levels, even though delivery times are getting longer.

Early trends in the Picasso launch
The confidence displayed by dealers (100,000 orders) is matched by the response from car buyers in the countries where the vehicle has been launched. Customer orders have climbed to a total of 58,800. Orders are being placed at a slightly faster pace than initially forecast.

Surveys of the first customers in France show that their reasons for purchasing the car are very similar to those mentioned by the buyers of other people-carriers in the M1 segment. The Picasso's powerful and alluring lines win it the highest marks for styling in its class. The driving station and boot capacity are singled out as strong points, and qualities such as modularity, comfort and accessibility also make the vehicle stand out.

Picasso buyers have a sharply different profile from the buyers of traditional saloons, which explains why the other Xsara models have not lost many customers to the new vehicle.

The Picasso attracts customers who are more family-oriented and demanding with respect to the vehicle's interior design They are also younger: 80 per cent of Picasso buyers are under 55, compared with 45 per cent for the other types of Xsara. It is not surprising, therefore, that a substantial 64 per cent of them are first-time customers.

Last, the success of the launch strategy is confirmed by a number of surveys on vehicle recognition. One month after the launch, more than two people in three already knew the model. The Xsara Picasso even scored a spectacular 71 per cent in aided recall (for comparison, the Xsara saloon scored 48 per cent one month into its launch campaign, the Xantia 58 per cent and the Saxo 63 per cent).

In terms of recognition, therefore, the Xsara Picasso scores as high as models that have already been on the market for a number of years.

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

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