PEUGEOT is to launch a number of major initiatives in 1997 designed to improve customer service levels and the first of those sees a reduction in dealer margins on the 406 from 10% to 9%.

The reduction, with effect from January 1, 1997, is designed to enable dealers to invest in their operations and boost the level of service they offer to fleets. It remains to be seen whether dealer margin cuts will apply to the remainder of the Peugeot line-up, and fleet and leasing director David Brookman was this week remaining tight-lipped on the other initiatives the manufacturer was planning.

In the first 10 months of 1996 Peugeot has seen its fleet sales increase 16.5% to 78,478 units and the 406, which was launched early this year, join the 306 in the top 10 best-selling fleet models charts. Next year Peugeot will launch the 406 Estate having earlier this year also launched two commercial vehicles - the Expert and Partner - to further boost its fleet presence.