New deal in N.Z. for Peugeot seekers

Press, 5 February 1987, Page 18

New deal in N.Z. for Peugeot seekers

BEHIND the WHEEL with

Peter Greenslade

Automobiles Peugeot, through its newly formed Clew Zealand distributor, Auckland-based Orly Motors, Ltd, will offer a new deal to people who have been starved of the quality French car for too long. ! .When limited numbers of the Peugeot 203 Reached New Zealand more than 30 years ago,

the long-established French make soon achieved an enviable reputation, based on quality, sound construction and innovative design. Peugeot became much better established with the 403 in 1955 and, subsequently, the 404. These were long-lived models that achieved astronomical mileages as taxis with-

out giving trouble during years of service.

The 404 was New Zealand - assembled and this continued after the 504 was introduced in 1970.

New Zealand assembly was abandoned in the late 19705, prices increased substantially, and Alliance Motors, a member of the Todd group, adopted a low Peugeot profile — a policy that, unaccountably, it maintained even when the imported car market began to flourish following the adoption of the motor industry plan.

While other exotic car importers made hay while the sun shone, Alliance did nothing to capitalise on its Peugeot franchise, even though the 505 — the only model available in this country — was an absolute steal amid the bevy of better European saloons.

It may have been that the Todd group felt it wise to'play down the French car when its main automotive thrust centred upon the Japanese Mitsubishi range which it was assembling in sizeable quantities at its Porirua plant. Naturally, Peugeot S.A., witnessing its European rivals making inroads in New Zealand, while its own sales figures did not reflect the upturn in the demand for European cars, must have become somewhat distressed.

The upshot of the affair was the formation of Orly Motors, Ltd, an Onehungabased company, backed by New Zealand Forest Products, to import and market the Peugeot range in New Zealand.

Although cars are a far cry from the timber industry, N.Z.F.P. has been involved in the motor industry for a number of years, firstly with Nissan and more recently with Eurotrans Motors, Ltd, the Renault handler in New Zealand. Renault is the State-

owned French car manufacturer. Eurotrans has been successfully marketing Renaults in New Zealand and, in fact, has done so well with the French range that N.Z.F.P. has been sufficiently encouraged to spread its wings in the motor business. At least, that is how the story goes. In any case, Orly Motors is capitalised to the extent of $1 million, so it is obviously not in business just for the sake of being in the motor trade.

Last week, the newlyformed company, now established in commodious premises, which include the only pre-delivery preparation centre in the local car industry, revealed its plans for some of its products for the future.

Prospects are exciting. Hubert Lehucher, director of the overseas operations

division of Peugeot, was on hand, with two of his lieutenants, to push out the Peugeot boat and he said that, following discussions with John Wood and Bernard Fannon, the general manager and national sales manager of Orly, respectively, as well as other members of the team, he had asked for a tenfold increase in Peugeot sales by the end of next year. This, he believed, was an achievable target. For his part, Fannon said: “We are confident of achieving an 800 per cent increase in Peugeot sales in our first year of operation. We are acutely aware of the high regard in which Peugeot is held in this country and intend to satisfy what we believe is a demand, frustrated in recent years by not only a shortage of supply, but a very restricted range of models.”

Fannon, as good as his word, then proceeded to

show the press corps a glittering array of cars likely to range in price from around $28,000 to $76,000.

It was from the first Orly shipment, comprising the 205 GTI, a hot hatch, the 205 CTI, a delectable Pininfarina cabriolet, and evaluation models of the 505 station waggon and the 309 saloon, as well as the 505 GTI, the only Peugeot model which New Zealanders know anything about. The 205 models are unashamedly expensive, the hatchback retailing for $47,500 and the cabriolet for $56,500. However, dealer demand for these cars has exceeded the supply. While the 505 GTi, another well specified and roomy saloon, will retail for around $63,000 — an unexceptional price for a European car in the 2litre category — the 505 GR Family is a most appealing station waggon,

furnished to luxury standards and capable of conveying seven people in comfort, and a reasonable load of baggage, at $55,666. Compared with the Volvo 760 Estate, which is more luxurious, the GR Family looks a bargain. Peugeot’s flagship will be the 505 V 6 saloon and it should retail for around $76,000. On the basis of the 505 GTi, the V 6 should give BMW, Audi and Mercedes-Benz handlers some sleepless nights. However, Orly’s piece de resistance could prove to be the 505 GR which with a 2-litre engine is going to hit purveyors of Japanese top-of-the-line models where it hurts most of all. It should sell for $45,000. ■ Although sales of Japanese cars have fallen relative to European exoticar sales, the Peugeot 505 GR could turn out to be the straw that will at least break a leg, if not the camel’s back. It is a spacious saloon and it should drive and handle in a manner that the Japanese have yet to emulate.

Finally, there will be the 309 which should be available in 1.3 and 1.6 litre forms. This is Peugeot’s newest model and it has already proved to be an outstanding success. Reputedly the 1.3-litre

version has a 50 per cent British content and, if the manufacturer can satisfy the New Zealand Customs Department on that count, it will meet Commonwealth preferential tariff requirements and should retail in New Zealand for between $28,000 and $29,000. This is a roomy, wellspecified saloon that could prove to be a thorn in the sides of comparably sized Japanese cars, some of which are comparably priced with the 305 already and could be even more expensive by the time the French car reaches dealers’ showrooms later this year. Peugeot and Renault models will undergo predelivery preparation. at Orly Motors’ headquarters, while Eurotrans and Orly will share John Wood, who will be general manager of each company.

However, neither Hubert Lehucher nor Wood is concerned about the two makes being under the one head, so to speak. Wood pointed out that the Renault and Peugeot operations were quite distinct and he could see no reason why there should be conflict of interest. Lehucher pointed out that State-owned Renault and privately owned Peugeot each accounted for a third of the French market and were good for each other. He could not even imagine a reason why the same situation should not pertain in New Zealand.

In the meantime, Eurotrans has picked up the New Zealand franchise for the Maserati and I understand that the first shipment of these turbocharged Italian high performance cars has already reached Auckland. Also, Wood hinted that N.Z.F.P. Eurotrans or Orly might be the avenue to gain another European franchise before the year is out. He would not be drawn further on that point at this juncture.