Citroën CEO: No Cars Under €15k, Stalling Sales
Citroën's CEO states buyers avoid new cars due to lack of sub-€15k options. We analyze prices, wages, and quality in the current auto market.
English · Original discussion in Spanish · Published
New car costs double what it did ten years ago; half the country can't afford one
Xavier Chardon, CEO of Citroën, publicly voiced what many suspected: people aren't buying new cars because there are virtually none under €15,000. But this isn't just a quip. Over the last decade, the average price of a compact car rose from €15,000 to €24,000, while real wages barely moved. The result is a free-fall in new car sales and an aging vehicle fleet.
Price hikes: over 50% increase in a decade
Consider a concrete example. The Citroën C4 cost around €15,000 in 2015. Today, an equivalent model doesn't drop below €24,000. That's a more than 50% increase in ten years. Meanwhile, salaries have risen far below actual inflation. “Since 2005, purchasing power has stagnated,” summarizes a stark fact: €1,000 today buys what €500 did in 2005.
Manufacturers blame European regulations: mandatory ADAS, particle filters, AdBlue, sensors, black boxes, connectivity... each requirement adds cost. But customers don't want to pay for obsolete screens, heated seat subscriptions, or engines that fail at 60,000 km. Stellantis' infamous PureTech engine has become a symbol of everything going wrong: oil-bathed timing belts, lubrication issues, mass failures, and poor after-sales support.
Those who can buy won't, those who want can't
The debate reveals two viewpoints. One argues most people lack the financial capacity for a new car. Housing eats up salaries, fuel is expensive, and Low Emission Zones (ZBE) restrict driving. “We can't even afford housing, which is more essential, let alone invest our savings in a car.”
The other side says the issue isn't just price, but value. “Modern cars are crap, stuffed with electronics, planned obsolescence, and design flaws.” A €25,000 compact no longer feels as durable as one from fifteen years ago. Buyers think, “I won't take out a loan for a screen and a cramped three-cylinder.”
Data confirms this: 60% of cars sold in Spain are used vehicles over ten years old. Drivers keep their old cars until they break down, then seek reliable, simple options. This explains why Japanese brands retain a good fruta, while Chinese manufacturers start capturing the market with cheap, well-equipped cars on paper.
Future: €15,000 cars again, or surrender to China?
Facing falling sales, Citroën announced a segment A model under €15,000. Skeptics recall we've seen this before: it will be a ridiculous two-seater with no trunk, a “cheap fix” that doesn't meet real needs. Meanwhile, Stellantis sold its Villaverde (Madrid) plant to Chinese manufacturer Leapmotor, which will produce electric cars there. Europe's auto industry is in intensive care, and EU regulations have accelerated its decline.
The unanswered question: if manufacturers can produce a €15,000 car, why haven't they done so earlier? The answer lies in margins: they prefer selling fewer units at higher prices, targeting affluent clients (over 55s, civil servants, childless couples). The rest must cope with old cars or public transport. Or else, let the Chinese save us.
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Xavier Chardon, CEO of Citroën, publicly voiced what many suspected: people aren't buying new cars because there are virtually none under €15,000. But this isn't just a quip. Over the last decade, the average price of a compact car rose from €15,000 to €24,000, while real wages barely moved. The result is a free-fall in new car sales and an aging vehicle fleet.
Price hikes: over 50% increase in a decade
Consider a concrete example. The Citroën C4 cost around €15,000 in 2015. Today, an equivalent model doesn't drop below €24,000. That's a more than 50% increase in ten years. Meanwhile, salaries have risen far below actual inflation. “Since 2005, purchasing power has stagnated,” summarizes a stark fact: €1,000 today buys what €500 did in 2005.
Manufacturers blame European regulations: mandatory ADAS, particle filters, AdBlue, sensors, black boxes, connectivity... each requirement adds cost. But customers don't want to pay for obsolete screens, heated seat subscriptions, or engines that fail at 60,000 km. Stellantis' infamous PureTech engine has become a symbol of everything going wrong: oil-bathed timing belts, lubrication issues, mass failures, and poor after-sales support.
Those who can buy won't, those who want can't
The debate reveals two viewpoints. One argues most people lack the financial capacity for a new car. Housing eats up salaries, fuel is expensive, and Low Emission Zones (ZBE) restrict driving. “We can't even afford housing, which is more essential, let alone invest our savings in a car.”
The other side says the issue isn't just price, but value. “Modern cars are crap, stuffed with electronics, planned obsolescence, and design flaws.” A €25,000 compact no longer feels as durable as one from fifteen years ago. Buyers think, “I won't take out a loan for a screen and a cramped three-cylinder.”
Data confirms this: 60% of cars sold in Spain are used vehicles over ten years old. Drivers keep their old cars until they break down, then seek reliable, simple options. This explains why Japanese brands retain a good fruta, while Chinese manufacturers start capturing the market with cheap, well-equipped cars on paper.
Future: €15,000 cars again, or surrender to China?
Facing falling sales, Citroën announced a segment A model under €15,000. Skeptics recall we've seen this before: it will be a ridiculous two-seater with no trunk, a “cheap fix” that doesn't meet real needs. Meanwhile, Stellantis sold its Villaverde (Madrid) plant to Chinese manufacturer Leapmotor, which will produce electric cars there. Europe's auto industry is in intensive care, and EU regulations have accelerated its decline.
The unanswered question: if manufacturers can produce a €15,000 car, why haven't they done so earlier? The answer lies in margins: they prefer selling fewer units at higher prices, targeting affluent clients (over 55s, civil servants, childless couples). The rest must cope with old cars or public transport. Or else, let the Chinese save us.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (244 replies).
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