As an auto enthusiast, I have always wondered why certain car brands are not available in the United States. One such brand that has piqued my interest is French automaker Peugeot. While their vehicles are enjoyed all over the world, they remain conspicuously absent from the American market. To understand this paradox, let us delve into the reasons behind Peugeot’s decision to stay away from the lucrative US market.
Early Days: Peugeot in America
The story of Peugeot’s presence, or lack thereof, in the United States dates back several decades. The French industrial giant entered the American market in 1960 with its acclaimed Peugeot 403 model. Over the years, a number of Peugeot models were sold in the USA, including the popular Peugeot 505 sedans and wagons. However, sales were never particularly strong, and the company faced stiff competition from both domestic and foreign manufacturers.
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Challenges Faced by Peugeot on American Soil
There were multiple factors that contributed to Peugeot’s difficulties in establishing a strong foothold in the United States. Some of the key challenges included:
- Safety and Emissions Standards: The stringent safety and emissions regulations imposed by the US government created numerous hurdles for the French automaker. In order to receive the green light to sell its vehicles on American shores, Peugeot had to meet these strict standards – often necessitating costly modifications to its cars.
- American Consumers’ Perceptions: It’s no secret that Americans have a unique taste when it comes to automobiles. Historically favoring larger vehicles with powerful engines, the comparatively smaller, fuel-efficient Peugeots just didn’t resonate with American buyers. Additionally, perception issues surrounding French cars’ quality and reliability damaged their reputation among prospective customers.
- Competition: In the crowded US market, Peugeot faced fierce competition from established automotive giants like General Motors, Ford, and Chrysler, as well as foreign manufacturers such as Toyota, Honda, and BMW. This intense rivalry made it tough for Peugeot to make a lasting impact on potential buyers.
The Final Curtain Call: Peugeot’s Departure in 1991
In September of 1990, the Citroën brand (part of what is now known as Groupe PSA) announced it was pulling out of the American market. A few months later, in April 2006, Peugeot followed suit. The company cited slow sales and a challenging economic climate as reasons behind its decision. At the time of withdrawal, Peugeot had sold just 4,261 cars in the United States – far below its expectations.
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A Glimmer of Hope: Peugeot’s Planned Return as part of Stellantis
In recent years, there have been rumblings that Peugeot might be considering a return to the US market. One major development that fueled speculation was the formation of Stellantis in January 2021. Created through the merger of Groupe PSA and Fiat-Chrysler Automobiles (FCA), Stellantis is now the fourth-largest automaker in the world, boasting an impressive lineup of car brands including Alfa Romeo, Jeep, Dodge, and, of course, Peugeot.
The Multi-Step 10-Year Plan
As part of Stellantis, Peugeot unveiled an ambitious multi-step 10-year plan to re-enter the North American market. Spearheaded by former FCA executive Larry Dominique, the plan was announced in 2016 and appeared to be moving forward until the merger with FCA was finalized.
Peugeot’s strategy for re-establishing its presence in the United States initially focused on mobility solutions rather than traditional car sales. The company launched Free2Move, a smartphone-based mobility app that provides users with a one-stop-shop for all their transportation needs – including car sharing, ride-hailing, public transit, and bike-sharing services.
From Mobility Company to Automaker?
While Peugeot’s initial focus in the US centered around mobility services, the company has not ruled out selling its automobiles at some point in the future. In fact, Peugeot has hinted at leveraging Stellantis’ well-established dealer network to reintroduce its cars to American consumers.
Moreover, Peugeot’s efforts in developing electric vehicles might give the automaker an edge in the increasingly competitive EV market in the country. With governments and consumers alike showing more interest in eco-friendly transportation options, electrification appears to be the way forward for automobile manufacturers. Could this be the catalyst for Peugeot’s successful return to the United States? Only time will tell.
Peugeot: A Part of American Automotive Culture After All
While we continue to wait for Peugeot’s potential return as an automaker, it is worth noting that the French company has maintained a presence in the United States through its bicycle division. The Cyclegroup Inc., a subsidiary of Peugeot’s parent company, Groupe PSA, continues to manufacture and sell bicycles under the Peugeot brand throughout North America.
So, even before a possible comeback in terms of automotive sales, Peugeot remains woven into the fabric of American culture – albeit on two wheels, instead of four.
About the author
Marcus Brown is editor-in-chief of The FatMech and is a mechanic with ten years' experience based in London, UK. Having worked for major dealerships for many years, Marcus now works for a local independent garage and has experience working on nearly every make and model of car. Marcus also has a passion for writing and teaching, which is where the idea for The FatMech came from. In his spare time, Marcus enjoys playing golf, doing home renovations and gardening. He lives just outside London with his wife and son.