Stellantis has officially confirmed that Peugeot will not expand into the US market and the planned return for the French brand has been canceled.
The conglomerate confirmed the decision to Automotive News today, but questions about the plan had been raised ever since the Stellantis merger that was finalized early this year. The confirmation follows the appointment of Larry Dominique as president of the Alfa Romeo brand for North America.
Dominique had previously been in charge of planning Peugeot’s return to the US market. Now, though, it appears that the focus will be on making Alfa Romeo work in the US.
The “new context of Stellantis with a strong presence on US market leads us to focus on existing brands,” a spokesperson told Automotive News. “This is why Larry will develop Alfa Romeo in this market.”
Read Also: Stellantis Intends To Return Chrysler To Its Former Glory
Group PSA, which merged with FCA to form Stellantis, had planned on introducing Peugeot to the American market to expand beyond the European market, where sales were stagnant. With the FCA merger, though, Stellantis now has a solid presence in the US market.
Alfa Romeo, however, has faced difficulties in America. Despite producing critically acclaimed cars in the form of Giulia and the Stelvio, sales have not impressed. The brand did show moderate growth in 2020, though. Although its sales only grew a little more than one percent, they did so in the context of a market that shrank by 15%.
Peugeot’s abandoned plans also appear to be good news for Chrysler too. Initial reports suggested that Stellantis would kill the brand, but subsequent reports have suggested that the conglomerate actually intends to return the brand to its former glory.
Indeed, with Stellantis’ attentions pulled in fewer directions, that can only be a good thing for both Chrysler and Alfa.
