For decades, Peugeot has been teasing entry into the American market. Today, the tease is officially over and the dream is dead, the company’s CEO Alain Favey told Newsweek during an exclusive roundtable with Women’s Worldwide Car of the Year jurors.
“I remember in the ’80s seeing Peugeot ads. I was studying in New York. I remember watching TV and seeing Peugeot ads in America,” Favey remembered. “Yes, there might have been temptations in the past, but there isn’t today.”
(Full disclosure: Eileen Falkenberg-Hull, this article’s author, is a Women’s Worldwide Car of the Year juror.)
Favey, who is a little more than a month into his new role, owes the decision to the strength of the Stellantis brand lineup that already exists in the U.S. Stellantis is the parent company of the Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall brands globally. Only Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram models are sold in the U.S.
Why won’t Peugeot come to America? For Favey, it’s an easy answer: “The reason is very simple. We’re part of the Stellantis group, and you know very well that Stellantis has a lot of very, very nice and very attractive American brands.”
Peugeot
“The question is, ‘Which role would Peugeot play in the North American market where we have such strong brands in the group?’ I don’t think that is the role that Peugeot should play. And therefore there is no plan at all for America,” Favey said.
“While the U.S. market is attractive for consumer spending and interest in personal transportation, the market is also saturated from a brand perspective. Breaking into the market is difficult, takes time, money and patience. Peugeot, as a Stellantis brand, would also be competing with sibling brands. Peugeot would be competing in a very crowded mass-market arena,” Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, told Newsweek.
“Wisely, Stellantis appears to have squashed any idea of plans to bring Euro-focused brands like Peugeot to the U.S., reflecting a mix of strategic focus and financial pragmatism. The company’s latest earnings showed declining operating income and margin pressure from all angles—especially in North America. In a tightening market, the focus should be less on brand expansion and more on strategic restraint and improving existing lineups,” Paul Waatti, director of industry analysis at AutoPacific, told Newsweek.
“Historical precedent reinforces the move: Fiat and Alfa Romeo’s underwhelming U.S. performance highlighted the challenges of launching European brands in a market that demands strong dealer support, brand recognition and localized product appeal—not to mention product overlap with existing U.S. product offerings,” he added.
Peugeot will continue to sell in Mexico and South America, Favey confirmed, saying, “We are present in Mexico, and we continue to be present there. We are present in South America as well, but there is no plan to be present in North America.”