Industry Report: Can Peugeot Ignore the North American Market Forever?
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In what has become typical French fashion Peugeot, one of Europes most prominent automakers, for all intents and purposes seems to have completely forgotten that the North American continent exists. Or have they?
After developing a loyal following up until 1992 it closed its doors on the U.S. for good, or so it seemed. But can they simply overlook the worlds largest automotive market indefinitely, especially considering competitive carmakers are broadening their global reach?
In a recent WardsAuto.com report Peugeot Chairman Jean-Martin Folz commented, “We are now the sixth largest manufacturer in the world.” He continued, “If we want to look at areas of future growth, we cannot ignore the fact the U.S. is the largest car market. And pretending we would never get interested in the U.S. would be preposterous.”
Of course after Frances stand-off against President Bush on his governments Iraq war initiative, and the fallout over French products by patriotic U.S. citizens, wine and cheese being the hardest hit, the current timing wouldnt be right to reenter the market. But Folz isnt concerned stating, “As a car manufacturer, we have no political opinion, clearly.” He continued, “Besides, by the time Peugeot makes its move, the tensions will be over. At least I hope so.”
For these reasons Peugeot is undergoing studies to understand specific jurisdiction regulations as well as define the types of vehicles and features North American consumers look for when buying a new car, so that when they do choose to come back, and thats a when not an if, theyll be offering a product enticing enough to overcome any stigmas that might still be lingering.
While the French company wasnt willing to forecast an estimated time of arrival, according to Folz it could be sooner than one might expect. In the interview he told WardsAuto.com, “We are launching new-generation products every year, so you never know.” He added, “Maybe we have some products coming right now that would meet American standards.”
Lauded by the European press for styling and drivability, and zealously followed by motorsport fans on the world rally stage, Peugeot would be welcomed by North American auto enthusiasts. Personally, I dont think any of its models would be rejected from a packaging or styling standpoint, as they are simply among the most attractive cars currently on the world market. Unlike Francophone rival Renault, Peugeot designs are more conventional, boding well for their acceptance into a more conservative U.S. marketplace.
With Renault in mind, they too are working toward reentering North America by 2010, or thereabouts. Their partial ownership of Nissan could pave the way to a smoother integration via an established dealer base. Peugeot, however, has no such ties and will need to start from scratch setting up relationships with prospective retailers who may be slightly apprehensive to align themselves with a company that has divorced itself from North American consumers for so long.
So, speed bumps aside, whats a good estimate for a return? Being that Peugeots plants have been working at 117% capacity, they wont be able to target a new market until new facilities are expected to be completed, sometime in 2005 or 2006.
But as light trucks and sport utilities arent as popular in Europe as in our domestic market Peugeot doesnt build any, excepting a minivan dubbed the 807. According to the report Folz isnt concerned.
“Clearly light trucks are significant, but there also are cars (being sold in the US),” he stated.
So take heart Peugeot aficionados, your brand just might just make a comeback this decade. It will be a refreshing alternative when it does.