The French-based Peugeot, now part of PSA Peugeot Citroen, is second only to Volkswagen in European market share. The organization also continues to hold an effective presence in the current Big Six European automotive scene. Since its re-organization in the '70s, the company produces a variety of passenger car platforms and utility vehicles under the Peugeot and Citroen nameplates.
The PSA Peugeot Citroen company has a tradition of manufacturing a broad line of motorbikes and scooters, along with automotive components, parts, and accessories. PSA owns more than 30 percent of the French market alone and more than 11 percent of the European market overall. Its traditional roots go back to the bicycle craze at the end of the 19th century. Though it is headquartered in Paris, 70 percent of its manufacturing operations occur in the French countryside. The operations have remained fruitful, as the company continues to generate roughly $41 billion (U.S.) in sales annually.
Though a bit sheepish after a failed three-decade stance in the U.S., PSA has recently set sales growth targets of 25 percent, directed at the Asian and Latin American markets.
As with its history, the Peugeot family remains an integral part of company operations, and several of its members sit on the board of directors. The family further reinforces its presence with a stock ownership exceeding 25 percent.
The Beginnings
Initially, the Peugeot family began operations in the textile industry by operating a mill in the disputed Alsace region of France. Following others moving into heavy industry, Jean-Pierre and Jean-Frederic Peugeot went into the steel business and developed a cold-roll method of producing spring steel. Initial products included thin steel rods for dresses, umbrella frames, and wire wheels. In the 1880s, the family became interested in the bicycle business as a result of grandson Armand's racing activities. Jean-Pierre developed and introduced the Peugeot "le Grand Bi" in 1882. Dubbed by observers and owners as both a "bone-crusher" and high-wheeler, the platform is considered one of the first French "penny-farthing" bicycles.
As the frenzied market continued, expansion was completed, which added profits almost through the 20th century. As with the younger generation of the period, it was Armand Peugeot whom would take his family into the automobile business.
Steam-Powered Peugeot Prototypes
Peugeot's first prototype, introduced in 1889, was a high, three-wheeled affair, similar in design to the first Daimler platform. In keeping with the mind-set of the period, a venerable and available steam powerplant propelled the unit. Four running prototypes were produced, but Peugeot dropped this initial concept quickly due to its size, weight, price, and safety considerations. In 1900, Peugeot met with Gottlieb Daimler personally and studied the workings of his new internal combustion engine. Suitably impressed, Peugeot then purchased and returned to France with one of Daimler's standard-production 525cc mills.
Always mindful of trends, Peugeot next produced his platforms in four-wheeled configurations. Twenty-nine of these units were completed in 1892.
In 1895, the company became the first to install solid rubber tires on its automotive platforms.
Armand Peugeot's bicycle-racing background was quickly transferred to his motorcars, winning some of the first European automotive races. The company entered the Paris-Rouen Rally in 1894 with five cars. A year later found Peugeot competing in the Paris-Bordeaux.