Peugeot’s Future in America Dims

When the PSA Group and Fiat Chrysler Automobiles were about to ink the deal in their final merger, hopes for the return of the Peugeot brand in the United States ran high. It is, after all, one of the biggest goals of the merger considering it’s been 30 years since the brand sold cars in America.

The initial target was for Peugeot to make a comeback by 2023. This was confirmed by PSA North America chief Larry Dominique, who said last August that plans are on track despite challenges attributed to the pandemic.

But in a recent report published by Automotive News Europe, the merger between the two companies, which will see the creation of the entirely new brand Stellantis, made Peugeot CEO Jean-Philippe Imparato want to reconsider plans to bring back Peugeot on American shores.

With Carlos Tavares set to assume the position of CEO for Stellantis, including FCA brands Jeep, Ram, Dodge, and Chrysler, Imparato shared his thoughts on Peugeot’s US return.

“We were last speaking about [Peugeot’s US re-entry] a year and a half ago, before Stellantis,” he said. “We can’t not take into account that in the coming days Peugeot will be part of this new world. I imagine in the coming months due to the new strategy we will have to adapt and reconsider all elements, including this one.”

Imparato further shared that Peugeot does not wish to overlap brands in the US, but also clarified that the re-entry is still “on the table.”

It’s a risky move, though, considering what happened to Italian automaker Fiat, whose sales have been lackluster, leading to the discontinuation of several models such as the 500 Hatchback, 500L, and 124 Roadster. But if Peugeot makes a successful return, the well-loved Peugeot 308 could be a tough rival for some of the models in the US market.