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Peugeot 20Cup and French cars in Canada

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Alex Law
All models are equipped with six speed gearboxes, either manual or automatic, depending upon the model. A specially-designed double-wishbone front suspension and integral multi-arm rear suspension combined with exceptional torsional body rigidity will "produce a great driving experience."

Like all 407s the Coupé has as standard a comprehensive active safety specification including: ABS, ESP, EBFD, ASR, seven airbags and active front head restraints.

Peugeot expects the Coupe to keep sales of the 407 moving around the world, following global sales of over 300,000 in a little over a year.

Peugeot 20Cup Concept (Photo: Peugeot)
Of course none of those new model sales will occur in Canada, which brings us back to the issue of why that's the case.

The biggest hurdle to the return of Peugeot, Citroen, Renault and any other European car company is that there is no room for them in North America, at least not if they're to be sold as part of a viable enterprise.

There are already so many vehicles available in Canada and the U.S. and so many others coming that no company that's doing business here now is going to come close to the sales levels that they've projected. Indeed, many companies will have to cope with declining sales numbers.

On top of that, the economics of making cars in Europe and bringing them to North America are terrible right now, thanks to the exchange rate between the euro and both of the dollars.

It's exceedingly expensive to market and maintain an auto company in North America, and that's when your vehicles are bringing in a profit, which non-premium models aren't doing now.

As a result, there are lots of auto executives talking about a "shakeout" coming, which means that firms that are selling cars here now will not be doing so for much longer.

Finally, except for a modest degree of interest from Quebec, there is no natural constituency for French vehicles anywhere in North America. They were sold here in various forms in the last 20 years and weren't well received, mostly for quality reasons.

Consider the French executive's view of all this -- huge costs for a small share of a mature market, and no chance of making a profit for some time. Or, set up shop in China, India and Russia and try to cash in on the extravagant expansion of the new car market in those developing companies.
photo:Peugeot
Alex Law
Alex Law
Automotive expert