Peugeot To Disappear From French Bike Market

PARIS, France (September 17) - In a meeting, which took place on 9 and 10 September, Cycleurope has informed its French dealers on the current state of affairs concerning the use of the brand name Peugeot. The contract with the PSA Group (owner of Peugeot and Citroen cars as well as Peugeot Motorcycles) that allows Cycleurope to use the brand name for bicycles will terminate definitively on 31 December 2004. However, the distribution of the brand on the French market will be discontinued as of the start of the new season. At the meeting, the dealers received the catalogue 2002, which only contains Gitane, Bianchi and Raleigh. Dealers, who so far sold exclusively Peugeot, are expected to switch to Gitane. Those who insist on still buying Peugeot bicycles can do so but all special dealer conditions, which currently apply, expire. Moreover, the network of former Peugeot-dealers will get a "new" signboard. Some time ago, Cycleurope launched the concept of 'Relais Vélo et Oxygène' for Peugeot-dealers who were prepared to participate in special marketing and communication actions. Les Relais Vélo et Oxygène were a result of the earlier launched franchising formula Veloxygen. At the meeting of 9 and 10 September, the dealer association Relais Vélo et Oxygène was disbanded so that in the near future the name can be used for all dealers who distribute Gitane, Bianchi and/or Raleigh. Representatives of Peugeot Motocycles (MTC) also attended the meeting. So far, Peugeot MTC and Cycleurope had not been getting on very well. Nevertheless, they are now actively making an approach. A considerable number of Peugeot bicycle dealers also sell Peugeot mopeds and scooters. Both groups wish to join forces in order to settle the new combination of Peugeot MTC and Relais Vélo et Oxygène promptly. Cycleurope will continue to produce Peugeot bicycles until the end of 2004, but these will be reserved exclusively for export. Particularly the supply of the German market will be assured. In the agreement with PSA on the termination of the contract, it is stipulated that until the end of 2014 PSA is not allowed to distribute bicycles with the brandname Peugeot through specialist bicycle dealers. Distribution of Peugeot bicycles through their car dealer network for instance would be allowed. At the dealer meeting Cycleurope explained that PSA was not prepared to renew the contract because they no longer wish the Peugeot brand name to be used by a group that does not belong to PSA. (JO)