[INTERVIEW] Korea leads global auto trends, says Peugeot CEO

Industry

Published: 24 May. 2023, 18:13

[INTERVIEW] Korea leads global auto trends, says Peugeot CEO

Peugeot CEO Linda Jackson talks during an interview with the Korea JoongAng Daily on Wednesday in southern Seoul. [STELLANTIS KOREA]

Peugeot hopes to rev up its revival in the Korean market after choosing the country as the first Asian region to release its newest Peugeot 408.

“Choices made in Korea undoubtedly have a ‘halo effect’ for other global markets,” said Peugeot CEO Linda Jackson in an interview with the Korea JoongAng Daily on Wednesday in southern Seoul.

“Korea is the first market to launch the new Peugeot 408 in the Asia Pacific regions,” Jackson said. “It’s important to get feedback from customers in Korea, the country that leads the global auto trend including electrification.”

Peugeot 408 is the first crossover utility vehicle (CUV) that the Peugeot brand is offering in Korea. The CUV, which is between a sedan and an SUV, offers a wider interior and views like SUVs but weighs less.

Jackson has served as CEO of Peugeot since 2021, after heading Citroen from 2014 to 2020. Peugeot is one of 14 brands under Netherlands-based Stellantis, which was formed in 2021 in a merger between Fiat Chrysler Automobiles and the PSA Group. Currently, Stellantis sells four brands in Korea — Jeep, Peugeot, DS and Citroen.

While the French carmaker has been recording new highs in European sales in recent years, it has been losing popularity in Korea. Peugeot's sales dropped 15.3 percent last year compared to the previous year, according to data from the Korea Automobile Importers & Distributors Association (Kaida). It sold a total of 417 vehicles in Korea between January and April, down 44.1 percent on year.

Peugeot 408 crossover [STELLANTIS KOREA]

“It’s a matter of segmentation, Europe is very B-segmentation, and that’s why Peugeot vehicles like the 208 are very popular,” Jackson said. “It’s the nature of the market.”

But Koreans are big fans of larger-sized cars like SUVs, so “We wanted to come up with a new concept, a mix between SUVs and sedans, which is also efficient in carbon emissions,” Jackson added.

“It was challenging, but people who are looking for design and who want to be distinctive from others will have the most potential as consumers for the Peugeot 408.”

The crossover will be available with a gasoline engine unlike the previous Peugeot 308 model, which was only released with a diesel version. Equipped with a 1.2-liter three-cylinder gasoline engine, the vehicle generates a maximum of 130 horsepower.

Jackson also vowed to make aggressive investments in Korea to improve customer service.

Peugeot's "Inception" concept car on display [STELLANTIS KOREA]

Peugeot currently has nine showrooms and 13 service centers across the country. The company aims to increase both of these numbers to 18 by the end of 2025.

It will open a new showroom in Daegu, and move its Gangnam showroom to Seocho, both in southern Seoul, and expand its size.

“I don’t need to tell anyone here how important the Korean market is to Peugeot,” Jackson said. “For Korean customers, in particular progressive hedonists who are passionate about both urban and leisure activities and value work-life balance, the new Peugeot 408 will be the right choice.”

Peugeot also unveiled its "Inception" concept car on Wednesday for the Korean press, an electric sedan that can run more than 800 kilometers (497 miles) on a single charge.

Wireless charging will be available for the Inception, which has a maximum of 680 horsepower.

Jackson’s focus on the Korean market comes with the growing demand for imported brands in the country. Of all vehicles on Korean roads, around 12.4 percent were imported brands in 2022 compared to 8.4 percent in 2017, according to Kaida.

BY SARAH CHEA [chea.sarah@joongang.co.kr]