Special Report: Citroen Business Centres

The Citroen retailer network has been through a tough time recently with dealers giving it the lowest possible desirability rating in last summer’s NFDA Dealer Attitude Survey. The root cause of the dissatisfaction was the hiving off of the premium DS brand to a select number of dealers.

The move did not go down well with dealers not invited to sell DS from June 2018 when the formal separation comes into play. However, the remaining dealers will still be representing Citroen and for some that will mean a renewed focus on LCVs.

Indeed vans have long been an area where Citroen dealers have punched above their weight: it’s the sixth biggest selling brand in the UK with a typical market share of between 7-8%. Crucially the brand understands the commercial market and its importance to retailers.

“If you were to ask a Citroen dealer they would probably say that our van programme is one of the best parts of the Citroen franchise because it’s consistent,” said Jeremy Smith, head of commercial vehicles and business sector operations.

“They won’t always agree the targets are fair but we do work as a partnership and they understand the programmes we have; it’s a very open relationship.”

All of Citroen’s 170 dealers can sell vans although the serious local SME and fleet sales are conducted through 75 designated business centres. Each centre has a dedicated trained member of staff and is expected to runs demonstrators and invest in marketing.

“There is a financial investment but there are standards and bonus monies they can earn and many work hard to unlock their higher level bonuses,” said Smith.

“In theory every single Citroen dealer could become a business centre because there are butchers, bakers and candlestick-makers near every Citroen dealership but it depends on whether there is enough of a catchment area around them to make it worth their while to make the investment.

“We are very clear that we do not have a two-tier programme, the standards are the same whether you sell 100 or 200 business sector vehicles a year.”

Citroen assists the network by holding a stock of around 300 of its most in demand converted vehicles.

“Vans are an immediate purchase whether in the case of a local builder, SME or a big national fleet; these products tend to be bought when the old one breaks down or is non economically repairable. Or, in the case of a larger national fleet, it tends to be either the ones they operate have worn out or they’ve picked up a new contract and suddenly need 20 more drop-sides. As a manufacturer, in order to be successful, you have to have the stock available and that’s why we run in the order of 300 vehicles in stock at any one time.”

Business centres have also proved they are good at moving this stock around. According to Smith they tend to be a close knit community – meeting at training sessions, launch events and twice yearly conferences – and will supply vans they hold in stock to dealers elsewhere who are closing a sale.

“At the beginning of 2014 we were typically selling around 100-120 ready to run vehicles a year, last year we sold over 750. We spread the stock around the network but it’s all mobile and they can move them around. Because we have the stock then the availability tends to drive it and dealers will swap stock between themselves.”

The case for business centres is well made but Smith believes there’s scope for all Citroen dealers to increase their van sales.

“All our dealers have a van on their forecourt and a van demonstrator. Last year one in three Citroens sold was a van. We sell 14,000 Berlingos a year and around 27,000 vans. It’s a significant part of our product offering.

“To be a Citroen dealer and to actively not sell vans is like running a Tesco store and not selling meat, drink or vegetables. We only have half a dozen dealers a quarter who don’t sell a van but we’re working with them; how can you be a profitable business if you don’t exploit all the opportunities?”

Curtis Hutchinson