'Peugeot Return to America' u200bu200bplan was shelved

Since the announcement of the merger between PSA and FCA, Peugeot’s US comeback plan has been questioned.

According to Autonews reports, Stellantis suspended the Peugeot brand's plan to return to the US market, saying that it hopes to focus on existing brands in the North American market.

Recalling history, Peugeot withdrew from the US market in 1991 due to the economic recession, declining sales volume, and rising US regulatory costs. The company sold only 4292 cars in 1990, a drop of nearly 80% compared to 1984.

In fact, PSA has announced its 'Return to the United States' plan since 2016 and insists that any of its brands, including Citroen, DS and Opel, may lead it to return to the North American market. However, PSA previously claimed that it is not in a hurry, and the only clear framework is that it plans to sell cars in the United States in 2026.

However, when PSA and FCA announced their merger in December 2019, Peugeot’s plans for a comeback in the United States were questioned.

Last week, a Stellatis spokesperson said: 'The new background of Stellatis Group's strong presence in the US market has led us to develop our existing brands, which is why Dominique will develop Alpha in this market. Romeo.'

Carlos Tavares, the current CEO of Stellaantis, is trying to reduce PSA's reliance on the stagnant European market. However, in recent years, with PSA's acquisition of GM Opel/Vauxhall in 2017 and a sharp decline in sales in China, the company's dependence on the European market has only increased.

At the same time, Tang Weishi is also preparing for a potential US comeback plan, trying to use the professional capabilities of the Opel German Engineering Center to ensure that the new PSA models are welcomed by the market.

The positive side is that the merger with FCA enables Stellattis to have a more balanced business portfolio in Europe and the United States. For example, SUVs and pickups under Jeep and Ram have been selling well in the United States, and can even be regarded as ' Profit cows'.

On the other hand, Alfa Romeo has made its debut in the United States. In the last year's market downturn, the brand's sales rose 1.6% year-on-year, but Giulia sedan and Stelvio crossover sales were lower.

It is worth mentioning that in an interview in December, Tang Weishi praised Dominique and his team’s work in the United States, stating that the latter’s policy has been applied throughout the Stellattis group. “The PSA North American team is working In preparation for returning to the US market, they brought us many ideas in logistics, maintenance, distribution models and marketing communications.' In his view, no matter what decision the group ultimately makes, it is all for the benefit of operation.