+ Click to Enlarge FRESH FROM PEUGEOT: Peugeot is about to launch its new minicar, the 207, for sale sale alongside the larger 206.

January 2, 2006

Paris, France - PSA Peugeot Citroen will launch its new mini-sized 207 next week, the start of an introduction of new models intended to revitalise sluggish sales in weak markets.

A spokesman at the French-based automaker said the 207 would go up against the Renault Clio (European Car of the Year 2006), Fiat's Punto, Ford's Fiesta, VW's Polo, Opel's Corsa and Citroen's C3 - with which the new car shares a platform.

The B segment is one of the most hotly contested market with about 3.5million sales worldwide each year - mainly to private buyers.

French new car registrations were down 1.4 percent in December but rose by 2.7 percent in 2005 with Renault down 14.7 percent for December and 4.5 percent for the full year, official data showed on Monday.

PSA Peugeot Citroen had a 1.1 percent decline in December and a 2.2 percent rise in 2005, boosted by a 5.7 percent increase in sales of the Citroen brand.

The Cetelem consumer credit organisation said last month that it expected new car sales in France to be up by three percent in 2005 and another two percent in 2006 to 2.12-million.

European new car sales were down 0.5 percent at the 11-month stage, with a 2.8 percent dip in November alone.

While Renault is due to unveil a three-year strategy on February 9, PSA Peugeot Citroen has accelerated its model launches.

However, faced with a ramp-up in production of the new models amid weak markets, the group was saddled with excess stock. In October, it reduced its targets for operating profit margin and production.

The 207 will be sold alongside the older 206 and will be built at Poissy in France and later at Trnava in Slovakia where PSA is investing an additional €350-million to boost capacity by 150 000 from the planned 300 000.

The Trnava plant will start production later this year. - Reuters