Citroën, whose discount policy works well in the UK and across Europe, had a disastrous year in 2006 with market share for new car sales down 23%.

The reason - Irish buyers did not want discounted cars. "It had a negative impact and our offers did not go down well in an affluent economy, " Niall Costello, sales and marketing director with the importers Gallic Distributors admitted this week.

Speaking at the launch of the new C4 Picasso, he said he is now reducing the list price of some models and increasing the specification on others for the same money. The cost is being shared by Citroën, Gallic Distributors and the dealers in a bid to bring sales back up.

"The good news is that for 2007 some prices will be going down, " he said. An example of the reduction in price is the C3 down from Euro15,600 to Euro15,195 and the C4 dropping from Euro22,200 to Euro21,950.

"There is an affluent economy here and the discounts had a negative impact. Market research showed that price was not the primary concern for most consumers. Value for money was."

So now the emphasis is on good value as Gallic plan to recruit 10 more dealers to their 30-strong network. There are also plans being finalised for dealers to give a two-year warranty on all secondhand Citroën cars to improve the image and residual value of the brand.

Citroën also plans to fight back with 12 new models which will be launched in the next three years.

"We want to improve the image and awareness of the brand. Our cars are good - we want to make them more desirable, " Costello says.

New models on the way are a five-seat C4 Picasso in May, which will sell alongside the seven-seater launched last week, as well as a C-Crossover 4X4 vehicle in October. For 2008, a new Berlingo and a van one level below it will be released, with Multispace also planned and a new C5 and C3. In 2009 then, a new C2 and C8 will be launched.

The new C4 Picasso is a stylish model which will appeal to young families and Gallic hopes there will be over 600 sales this year, eventually rising to 1,000 a year.

Prices start at Euro27,300 for the 1.8-litre, rising to Euro36,550 for the two-litre in the petrol line-up.