The story of the PSA Group is not just about cars. It is a story of survival. It traces how two distinct French giants—Peugeot and Citroën—collided, struggled, and eventually merged to dominate Europe. The result was one of the continent’s largest automotive manufacturers before it became part of the sprawling Stellantis conglomerate in 2021.
The Steel Roots of Peugeot
Peugeot did not start with engines. It started with steel. In 1810, brothers Jean-Pierre II and Jean-Frédéric Peugeot opened a foundry. They made coffee grinders and saw blades. Then, in 1885, the family set up a shop to build velocipedes and quadricycles. This was the seed.
Armand Peugeot took control in 1896. He established the Société Anonyme des Automobiles Peugeot. The shift to automobiles was not immediate. Mass production arrived later. The 1929 Peugeot 201 changed everything. It was a success. The company quickly expanded its lineup. By 1953, Peugeot was also churning out popular motorized scooters.
Citroën’s Industrial Scale
André Citroën had a different background. He made money in munitions during World War I. His factories were so efficient that he could buy the Mors Company afterward. Citroën served as president there before striking out on his own.
The company became Citroën SA in 1924. Its strategy was clear: low prices. High volume. By 1933, the brand had built 90 percent of the taxicabs in Paris. They were everywhere. But cheap cars and rapid expansion came with risks.
Financial Troubles and the First Merger
The Great Depression hit hard. Citroën ran out of cash. In 1936, the Michelin tire company stepped in to buy the failing automaker. This was not the end. It was a reprieve.
The 1960s brought more mergers. Citroën absorbed several other makers. Financial instability remained a constant shadow. Peugeot saw an opportunity. In 1974, they bought a nearly 40 percent share of Citroën. By 1975, Peugeot owned it all.
A new parent company emerged. They called it PSA (Peugeot Société Anonyme). It was a holding company for a massive industrial complex. They made cars. They made trucks. They also produced bicycles and motorcycles.
Global Expansion and Rebranding
The late 1970s saw PSA look across the Atlantic. From 1978 to 1979, they acquired the European car and truck units of Chrysler Corporation. They also took over related finance operations. These assets were renamed Talbot.
In 1991, the company rebranded itself as PSA Peugeot Citroën. In 2016, it dropped the second name to become simply PSA Group. The strategy was aggressive consolidation.
In 2017, PSA completed a major acquisition. They bought Opel and Vauxhall from General Motors. The deal was valued at approximately $2 billion. This move gave PSA a stronger foothold in Germany and the United Kingdom.
The Final Merger
The end of the PSA Group era came quietly. In 2021, the company merged with Fiat Chrysler Automobiles. The new entity was named Stellantis NV. The independent French giants were gone. They had become part of a global super-automaker. The history of Peugeot and Citroën continues, but under a different banner.
