It's Decision Time for PSA's American Return

Steph Willems
by Steph Willems

PSA Group surely wishes it had a crystal ball. As the French automaker prepares to make a series of key decisions for its planned North American return, the future trade landscape between the United States and Europe couldn’t be murkier. Will U.S. President Donald Trump levy steep tariffs on imported European cars, or will existing and proposed tariffs crumble like the Berlin Wall?

That’s just one consideration company brass needs to weigh. Other hard choices involve selecting the types of vehicles Americans might want to drive.

The long road back to North America — a market Peugeot vacated in 1991 — began with mobility services, but the ultimate goal is to have the retail sale of Peugeot, Citroën, or upscale DS cars by 2026. Earlier this year, the automaker said it was eyeing 15 U.S. states and four Canadian provinces as key markets.

Speaking to Automotive News on the sidelines of the Paris auto show, PSA Group CEO Carlos Tavares said the company has entered a crucial phase of its plan. Exactly which PSA brand will make the boat trip sits at the top of the decision list, but the distribution model must also be agreed upon. In the past, the automaker has spoken highly of adopting a low-cost, cutting-edge direct sales model, but AN now reports the company has a traditional dealer network in its sights.

“For each of those strategic questions, there are several scenarios,” Tavares said. “We are going to decide between now and spring of 2019.”

As it formulates its retail plan, PSA has updated its Free2Move app, which grants users in several West Coast markets access to ride-sharing, ride-hailing, and other mobility aids — if you want to call them that. It also plans to unveil a short-term rental fleet in Washington, D.C. by the end of the month.

Just don’t expect to hop behind the wheel of a new Citroën C3 Aircross after touching down at Reagan. For this initial venture, PSA plans to lease Chevrolet Equinoxes and Cruzes. Eventually, PSA vehicles will supplement domestic and foreign makes in the company’s U.S. mobility fleets.

[Images: PSA Group]

Steph Willems
Steph Willems

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  • Jfb43 Jfb43 on Oct 08, 2018

    What we really need is the Dacia Sandero.

  • Namstrap Namstrap on Oct 08, 2018

    As a Canadian looking at the current political situation, and the threats from POTUS, I think welcoming imports from places like France would be a good idea, if just for our own use. We could build factories here as well which would employ Canadian workers.

    • See 1 previous
    • Corey Lewis Corey Lewis on Oct 10, 2018

      Selling cars only in Canada would be similar to those special models which were only sold in Australia.

  • Jeff Self driving cars are not ready for prime time.
  • Lichtronamo Watch as the non-us based automakers shift more production to Mexico in the future.
  • 28-Cars-Later " Electrek recently dug around in Tesla’s online parts catalog and found that the windshield costs a whopping $1,900 to replace.To be fair, that’s around what a Mercedes S-Class or Rivian windshield costs, but the Tesla’s glass is unique because of its shape. It’s also worth noting that most insurance plans have glass replacement options that can make the repair a low- or zero-cost issue. "Now I understand why my insurance is so high despite no claims for years and about 7,500 annual miles between three cars.
  • AMcA My theory is that that when the Big 3 gave away the store to the UAW in the last contract, there was a side deal in which the UAW promised to go after the non-organized transplant plants. Even the UAW understands that if the wage differential gets too high it's gonna kill the golden goose.
  • MKizzy Why else does range matter? Because in the EV advocate's dream scenario of a post-ICE future, the average multi-car household will find itself with more EVs in their garages and driveways than places to plug them in or the capacity to charge then all at once without significant electrical upgrades. Unless each vehicle has enough range to allow for multiple days without plugging in, fighting over charging access in multi-EV households will be right up there with finances for causes of domestic strife.
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