As American auto makers continue to struggle amid growing competition from Asian automakers, another rival may enter the U.S. market: PSA.
The French auto maker, which sells cars under the Peugeot and Citroen marques, is experienced in producing stylish small cars that often run on diesel. Demand for such models is growing in the U.S. as the price of gas rises.
The growing interest in diesel may drive PSA's new CEO Christian Streiff to bring the Peugeot brand back to America after a 16-year absence. Streiff reportedly will announce a three-year plan to return State-side in May.
Perhaps the best way for PSA to return to America would be through an acquisition. After all, such a plan worked for rival Renault. The Renault-Nissan alliance has successfully brought Renault back to the U.S.
A likely candidate for an alliance or merger would be PSA’s joint-venture partner Mitsubishi, which currently produces crossovers for sale in Europe under the Peugeot nameplate. Mitsubishi has been reeling in the U.S. ever since its partnership with DaimlerChrysler ended. Maybe some French inspired designs could re-infuse American interest in the brand without potentially watering down the Peugeot name, should Americans turn their noses up at the thought of buying a French product that’s popular in Iran.—Matthew Wurtzel
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