PSA HAS announced it is buying a stake in a used car retailer to expand in to new areas of business.
The maker of Peugeot, Citroen and DS vehicles is in exclusive talks with website Aramisauto to purchase 30 per cent of the business, with a view to inject more cash through a captial increase and become a majority stakeholder.
According to Reuters, head of PSA’s used cars division Marc Lechantre said this will unlock ‘strong growth potential in a second-hand market that is twice the size of the new car market, but where we currently have little presence.’
Chief executive Carlos Tavares pledged in April that PSA would become a leading player in multi-brand vehicle repairs and second hand car sales.
There is a strong focus on the used car market at PSA as a whole and in the UK. Peugeot UK MD David Peel told Car Dealer at the Paris Motor Show that the brand is running a used car marketing scheme this month for its dealers, costing £1m.
PSA is diversifying across the globe to increase its chances of survival, after it came close to bankruptcy in 2013-14. It’s stated it is targeting a five-fold increase in parts sales through the low-cost online retailer it bought last year, called Mister Auto. In Los Angeles it is also developing a car sharing scheme in partnership with Bollore Group.
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