In an effort to combat sagging sales, PSA Peugeot-Citroen is reportedly adopting a new strategy that will further differentiate their upcoming models.

In an effort to combat sagging sales, PSA Peugeot-Citroën is reportedly adopting a new strategy that will further differentiate their upcoming models.

As part of the transformation, Peugeot will move upmarket and attempt to appeal to traditional car buyers. Citroën, on the other hand, will have two lines: affordable "C" models and upscale "DS" variants.

Citroën's "cheap premium" philosophy recently debuted on the C-Elysee sedan and will carry over to the next-generation C4 Picasso which was previewed by the Technospace concept at the Geneva Motor Show.

It remains unclear if the repositioning will work, but PSA CEO Philippe Varin contends the "brands are too close" and need to target different customers.

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