Peugeot risks not returning to the American market
January 16, 2021The merger of FCA and PSA will not help the cause of the French brand Peugeot. Peugeot left the US in 1991 due to poor sales. Needless to say, returning to the US market is a high risk, in part due to the risk of brand duplication.
The merger of Fiat Chrysler Automobiles and Groupe PSA into Stellantis almost happened. Next week, the world’s fourth largest car manufacturer will appear on stock exchanges in Paris, Milan and New York, with 14 brands and annual shipments of around 8.7 million vehicles.
Initially, this merger was not supposed to affect the return of the Peugeot brand to the United States. Groupe PSA CEO Carlos Tavares announced his intention to return to the American market by 2023 back in 2016. Meanwhile, Tavares is sure to become Stellantis’ CEO.
However, Peugeot CEO Jean-Philippe Imparato told British reporters that the merger made the US return less “confident.” The plan is still under consideration, although it is important that Stellantis does not overlap with brands, as Imparato pointed out, especially in a market as huge and choosy as the US.
“We cannot ignore the fact that in the coming days Peugeot will become part of this new world. I believe that in the coming months, due to the new strategy, we will have to adapt and revise all the elements, including this one, ”said Imparato in an interview.
Unsurprisingly, Stellantis will keep Peugeot in its core markets. The French brand sells especially well in Europe, but its portfolio also includes the Middle East, Africa and Latin America. China, which is another major automotive market, is also under development.
