Peugeot began manufacturing cars in 1889 with a steam driven three-wheeler after Armand Peugeot met with Gottlieb Daimler and was convinced of the future possibilities. With continuing successes, Armand broke away from the family firm and created S.S. des Automobiles Peugeot. In 1903 Peugeot added motorcycles to its vehicle line and subsequently

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produced half the cars built in France. They also racked up numerous racing victories, including two wins at Indianapolis between 1916 and 1919.

Unfortunately, the First World War forced them to emphasize production on arms and when automotive production resumed, the cycle division separated from the car division, forming their own company.

Peugeot was able to acquire troubled auto-maker Citroen in the 1970s from the French government along with more operating cash. With continued growth, they also took over the European division of Chrysler. These acquisitions led to financial trouble for the company. While trying to cut losses, all brands suffered decreased sales due to emphasis not being put on style.

In the late 1990s a new president was brought in to lead the alliance. Under new management, facility closures and staff reduction are improving the financial outlook along with the introduction of new models. They are also working on a diesel-electric hybrid that promises to be one of the most fuel-efficient cars in the industry.

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