Peugeot: Encyclopedia II - Peugeot - Company History

Peugeot - Company History

Although the Peugeot factory had been in the manufacturing business for some time, their entry into the world of wheeled vehicles was by means of the bicycle. Armand Peugeot (educated at the Ecole Centrale Paris) introduced the Peugeot "Le Grand Bi" penny-farthing in 1882 and a range of bicycles thereafter. Indeed, Peugeot bicycles have been built until very recently, although the car company and bike company parted ways in 1926.

Armand Peugeot became very interested in the automobile early on, and after meeting with Gottlieb Daimler and others was convinced of its viability. The first Peugeot automobile (a three-wheeled steam-powered car) was produced in 1889, in collaboration with Léon Serpollet. Steam power was heavy and bulky and required lengthy preparation before running, so it was soon abandoned in favor of the petrol-fueled internal combustion engine. 1890 saw the first such vehicle, powered by a Daimler engine and with four wheels.

Further cars followed, twenty-nine being built in 1892. Peugeot became the first manufacturer to fit rubber tires to a petrol-powered car that year (solid tires; pneumatic would follow in 1895). The vehicles were still very much horseless carriages in appearance and were steered by tiller.

1896 saw the first Peugeot engines; no longer were they reliant on Daimler. Further improvements followed; the engine was soon under a hood (bonnet) at the front of the car, instead of hidden underneath, the steering wheel was adopted, and they began to look more like the modern car.

Peugeot added a motorcycle to its range in 1903, and motorcycles have been built under the Peugeot name ever since.

1913 saw a Peugeot driven by Jules Goux winning the Indianapolis 500. This car was powered by a Straight-4 engine designed by Ernest Henry, which had been successful in Grand Prix racing. This design was very influential for racing engines as it featured for the first time DOHC and 4 valves per cylinder providing for high engine speeds, a radical departure from previous racing engines which relied on sheer huge displacement for power. When one of the Peugeot racers remained in the United States during World War I and parts could not be acquired from France for the 1914 season, owner Bob Burma had it serviced in the shop of Harry Arminius Miller, by a young mechanic named Fred Offenhauser. Their familiarity with the Peugeot engine was the basis of the famed Miller racing engine, which later developed into the Offenhauser, or "Offy" racing engine.

By that year, Peugeot produced half of the cars built in France. 1916 and 1919 saw repeat wins at Indianapolis.

During the 1914-1918 years Peugeot turned largely to arms production, becoming a major manufacturer of arms and military vehicles, from bicycles to tanks and shells. Postwar, car production resumed in earnest; the car was becoming no longer just a plaything for the rich but accessible to many. 1926, however, saw the cycle (pedal and motor) business separate to form Cycles Peugeot -- the consistently profitable cycle division seeking to free itself from the rather more boom-and-bust auto business.

1929 saw the introduction of the Peugeot 201, the first car to be numbered in what became the Peugeot way -- three digits with a central zero, a registered Peugeot trademark. It was also the first mass-produced car with independent front suspension. Soon after, the Depression hit; Peugeot sales dived, but the company survived. In 1933, attempting a revival of fortune, the company unveiled a new, aerodynamically styled range; in the following year, a car with a folding, retractable hardtop was introduced, an idea revived by the Ford Skyliner in the 1950s and Mercedes recently.

The Second World War saw Peugeot's factories taken over for the German war effort, producing trucks and vans. The factories were heavily bombed.

1948 saw the company restarting in the car business, with the Peugeot 203. More models followed, many elegantly styled by the Italian design firm of Pininfarina. The company began selling cars in the United States in 1958. Like many European manufacturers, collaboration with other firms increased; Peugeot worked with Renault from 1966 and Volvo Cars from 1972.

In 1974 Peugeot bought a 30% share of Citroën, and took it over completely in 1976 after the French government added large sum of money to the new company. Citroën enthusiasts complain that the company's legendary innovation and flair took a downturn with that acquisition. The joint parent company became the PSA (Peugeot Société Anonyme) group, keeping the separate identities of both brands but sharing engineering and technical resources.

The group took over the European division of Chrysler (which were formerly Rootes and Simca), in 1978 as the American auto manufacturer struggled to survive. The factories acquired were worn-out and the models outdated, and the resulting investments caused financial problems for the PSA group. From then on, the whole Chrysler/Simca range was sold under the Talbot badge until production of passenger cars was shelved in 1986. The Peugeot takeover of Chrysler Europe had seen the Chrysler Sunbeam, Horizon, Avenger and Alpine ranges rebadged as Talbots. There were also new Talbots in the early 1980's - the Solara (a saloon version of the Alpine hatchback), the Samba (a small hatchback to replace the Sunbeam) and the Tagora (a large saloon based on Peugeot 505 mechanicals).

1983 saw the launch of the popular and successful Peugeot 205, which is largely credited for turning things around. A large number of successful vehicles have followed.

In 1986, the company killed off the Talbot brand for passenger cars when it ceased production of the Simca-based Horizon/Alpine/Solara models. What was to be called the Talbot Arizona became the 309, with the former Rootes and Simca assembly plants in Ryton and Poissy respectively being turned over for Peugeot assembly. The former was significant, as it signalled the very first time Peugeots would be built in Britain. The Talbot name survived for a little longer on commercial vehicles until 1992 before being shelved completely.

US sales faltered, falling to just 4,261 405 and 505 models in 1990. The company's 2,240 sales through July, 1991 caused the company to pull the plug after 33 years.

Adapted from the Wikipedia article "Company History", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki