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Subsidiary
  • Peugeot
  • Citroen
  • Introduction PSA is one of the top six car makers in Europe. It was formed in 1976 when Peugeot took over Citroen. Both companies have a long history - Peugeot is even over 100 years old. Since the early 90 is, due to the increasing competition, cost sharing between these two brands has been increasing gradually. From component sharing to platform sharing, we saw they are losing individuality, especially is Citroen, which was renowned for producing the most unique cars in the world.  

    In 1997, the platform sharing reached a peak as the Citroen Saxo was launched. It is simply a facelifted Peugeot 106. Luckily, next year the Group changed its mind again and promised different characters to be built into the future models. The Peugeot will emphasis the traditional value - good handling combines with elegance; Citroen will represent radical thinking in styling and packaging. The concept car C3 seems paved the way for the rebirth 2CV to be launched in 2000, while the Picasso MPV is no less radical. They have no family resemblance at all to Peugeot 206, 406, 607 etc. 

    Inevitably, platform sharing will be spread to all models (today s XM and 605 have little in common, while Xantia and 406 have different suspensions), but with more care in tune and design, they could appear to different customers.

    Sales figure Group production 2.1 milllion units in 1998, dropped from 2.3 million units in the previous year. 
    In 1998, Peugeot produced 1.2 million cars, compare with the 0.9 million of Citroen.
    Location Main plants : 
    France : Aulnay, Mulhouse, Poissy, Rennes, Sochaux, Sevelnord. 
    Spain : Vigo, Villaverde, Valenciennes (joint venture with Fiat to produce MPV) 
    Italy : Sevel 
    UK : Ryton
    Brief History Peugeot 

    The Peugeot family established a solid financial basis since the early 19th century by producing various industrial products, including bicycle. In 1890, just 4 years after Carl Benz and Gottlieb Daimler is invention of motor car, Armand Peugeot produced his first 4-wheel motor vehicle based on his quadricycle. It was powered by Daimler is engine. A few more models were developed before the establishment of "Société des Automobiles Peugeot" in 1896, the company we simply refer to "Peugeot" today. 

    Next year, Peugeot also made its own engine. The following years saw some industry is first : pneumatic tyre (by Michelin), steering wheel and transmission shaft with universal joint (instead of chain). Another stunning design is the Grand Prix car in 1912, which used hemi-spherical combustion chamber with cross-flow head and 4-valves per cylinder driven by twin overhead camshafts. Wow, today this still sounds sophisticated. 

    However, in the following decades Peugeot did not create any car as stunning. Without a car like Beetle, Mini, 2CV etc., Peugeot still grew steadily. The 201, which started the naming rule to be followed until today, reached a total run of 140,000 units in 7 years since 1929. 

    After World War II, Peugeot continued growing. In 1965, the company underwent massive expansion, becoming Peugeot S.A. (PSA), a holding company controlling all the group's different companies. PSA absorbed the bankrupted Citroen in 1976 and the falling European Chrysler-Simca in 1978. The group replaced the latter by launching a new marque, Talbot, which just survived until 1986. 

    The product remained low state until the arrival of 205 hatchback in 1983, which not only setting a sales record for the group but also thrilled the world with the 205 GTI. 


    Citroen 

    In contrast to Peugeot, Citroen used to be the focus of the world is car lovers. It was founded by Andre Citroen, who had been rich during the WW I via producing military goods. He was regarded as a great talent of business, with clear vision, motivation and enthusiasm about cars. The success of Citroen was mostly due to his leadership. 

    Having earned enough money, he converted his factories to build cars. The first model was Type A, in 1919, which is considered to be the first mass production car in Europe. He nearly built the Rome in one day - by 1929, Citroen became the world is second largest car maker. This is partly because of innovative technology, such as the all steel monocoque body in place of the popular wood / steel sheet lamination, then came the front-wheel-drive. Another important contribution is the way he did the business - he treated car making is not only selling a good but also services. Therefore a credit company was set up to help customers financing the purchase, a dealer / service network was established to enhance marketing as well as after sales services. He also introduced the first 1-year warranty. 

    However, the excessive growth (hence loan) was hit by the world s recession in the 30 s. Although the famous Traction Avant was launched in 1934 as the world s most advanced mass production car, the sales success still failed to ease the pressure from banks. That year, Andre Citroen had to sell his company to tyre maker Michelin. 
     
    The post-war Citroen continued introducing innovative cars, such as DS and SM, both featured hydropneumatic suspensions and advanced aerodynamics. But it is another car that broke the sales record set by Traction Avant : the little oddly 2CV. Its simple yet practical design is exactly what the European wanted. Then became a niche in later years.  

    No matter which models, all Citroen before the mid-80 is are unique. They look and feel like no others. 

    PSA (Peugeot) took over the company in 1976 from Michelin, integrated it into the group. Undoubtedly, today Citroen no longer has independent R&D and production sites. Unique character has been losing during the past decade (that is, after BX and XM) due to extensive platform / component sharing without intention to reserve character. Hopefully this lesson will change the development of the next decade.