Peugeot boss: "there are lots of competitors, but I see a sea of banality"

Peugeot had already been going 80 when it made its first car, and that was 135 years ago. But what, apart from being extremely old, makes it different from relative newcomers such as Hyundai, or total newcomers BYD?

It's a question that occupies many 'heritage' car companies - the need to find a distinctive position for themselves in a rapidly changing automotive universe. Peugeot chief executive Alain Favey says it's pretty straightforward. He plans for his company to stick its neck further out.

"There are lots of competitors, but I see a sea of banality. Peugeot has heritage, innovation, design, French style. We're trying to get a position that's different, rather than being more banal than the banal. And we need to speed up."

One quick decision after he arrived earlier this year was to whistle up a GTI version of the E-208. "I couldn't believe we weren't using that heritage. We need to do it." Why is it electric? "It's the market reality today. And it has the performance." A petrol one in France would hit crippling taxes, he points out.

"We're serious about pleasure," he says. The company was founded in Eastern France and is still based there with members of the Peugeot family still in management. "It's a serious hardworking area," he says. In that sense a bit German, is the subtext.

But not po-faced. "We have French charisma, and high-tech aesthetics. We're known for driving sensations, and we're future proof and built to last. This is one of the few great brands in Europe. There's a wealth of value in our history and DNA." He has perspective. He arrived after senior jobs at Porsche and Bentley. Before that he had experience with the French, including a spell running Citroen in the UK.

Apart from not having a GTI on sale yet, he sees a bigger issue. "We are not at our full potential." Only five per cent of the cars sold in Europe at the moment are Peugeot, when just before the pandemic it had a seven per cent share.

Loads of older manufacturers have had limbs cut off by the growth of the likes of BYD and Hyundai, of course. What's his answer for Peugeot to get it back? "We increased prices too fast after Covid. We did well on fleet but lost on retail as we weren't active enough there. The tone and style of our ads will be different in future. Warm, dynamic and human."

Very well, but a car company can't be turned around by adverts alone. Which he knows. "In the end it's all about product. We must deliver on quality. And innovation – it's why we're here on planet earth. We're not going to be conservative."

All of which, he says, means the new Hypersquare by-wire steering system is a perfect fit.

"It's the future of steering for us. Eventually it will go throughout our range. I compare it to Quattro." He means that 4WD gave Audi a leap in public consciousness even after its intro when many others were using it. "It demonstrates what Peugeot is about, playing a role in the future of cars."