Xavier Chardon unveils his strategy for Citroën: a focus on dealership profitability

After several weeks of silence following his appointment, Citroën's new CEO, Xavier Chardon, is now increasingly sharing his vision for the brand's future. His recent statements, symbolically made in the presence of the founder's grandson, Henri-Jacques Citroën, offer a candid and pragmatic look at the current situation. Today, the crucial topics of the dealership network, its profitability, and Citroën's strategic positioning are being addressed, providing a clearer understanding of the strategies that will shape the brand's path forward.

Global performance and product ambitions: a two-sided strategy

Citroën's global standing presents a study in contrasts, a point Xavier Chardon addresses directly. The brand is currently experiencing its greatest successes far from Europe. "In South America, we are achieving our best results in ten years, particularly in Argentina and Brazil," he explains. Having secured a 2% market share in the region, Citroën is making significant progress. Turkey is another major success story, with the brand ranking among the top three automakers. This momentum is partly driven by models like the new Basalt crossover, specifically designed for India and Latin America. These regions, once considered complementary markets, have now become the primary drivers of growth and profitability for the chevron brand.

Meanwhile, the situation in Europe requires a patient and focused rebuilding effort. While sales volumes are showing a "slight rebound," market share remains modest. Limited availability of certain models, such as the C3 Aircross, has forced the brand to prioritize fulfilling existing orders over attracting new customers. Hopes are now pinned on the launch of the new C5 Aircross, expected in the coming weeks. On this matter, Xavier Chardon emphasizes a non-negotiable priority: quality. "We will only start production when we are absolutely sure of the quality," he insists, noting that the hybrid version's release was intentionally delayed by a few weeks to ensure a fully matured product. This cautious approach is intended to restore confidence and build a solid foundation for the future. These product ambitions have direct implications for the dealership network, especially in France, which is expected to lead this revitalization.

The dealership network: at the heart of the recovery plan

According to Xavier Chardon, the greatest challenge lies not with the products themselves, but with the financial health of the French distribution network. With rare frankness, he makes a clear assessment: "The profitability of the dealership network in France is slowly improving, but we are still operating at a loss. This is an unacceptable situation." To reverse this trend, he has outlined a recovery plan based on three fundamental pillars.

The first pillar is to increase the sales volume of new cars. For the CEO, the issue is not the profit margin per vehicle but a lack of scale. "The problem isn't the margin, but the lack of scale," he states. Selling more cars is therefore the top priority to ensure dealerships can return to a sustainable business model. The second pillar involves reorganizing the used car market, an initiative being conducted in cooperation with parent company Stellantis. Buy-back programs and specific subsidies are planned to restore profitability to this crucial segment.

Finally, the third pillar aims to stabilize the after-sales service business, which has been heavily impacted in recent months by massive recall campaigns (Takata, PureTech, AdBlue). "These are not financial losses, but this is not the kind of work that generates normal service profit," Xavier Chardon clarifies. In response to this challenge, he has made a decisive move: the plan to modernize showroom aesthetics has been suspended. "I cannot ask dealers to invest in cosmetics if their balance sheet is negative," he declares. The focus is shifting to people, by strengthening sales teams and fostering loyalty among sales staff. His philosophy is perfectly captured in his statement: "I prefer a salesperson who is fully committed to Citroën over a showroom with a new coat of paint that brings in no money."

In conclusion, Citroën's new CEO appears to have a remarkably clear vision of the situation. Xavier Chardon is proving to be a pragmatist, offering a lucid diagnosis of the challenges ahead while defining a precise and understandable strategy. His expectations, particularly for the network, are high but are grounded in a shared objective: a return to sustainable profitability. This direct and unvarnished approach is laying a healthy groundwork for a new future for Citroën—a future where the brand's historic passion must be supported by a solid economic foundation.