France’s Best Sedan Failed In America, Then Conquered The World

French Cars in the USA


French cars have an odd history in the U.S to say the least. These were never massive sellers stateside, but the idiosyncrasies made them charming for some reason. That said, it’s the same oddness that limited their market appeal, but those willing to put up with the quirks and embrace the cars’ character were rewarded with a truly unique experience. French car brands in the USA included Citroën, Peugeot, and Renault, and were fairly well represented.

The thing is, charm doesn’t always translate to sales, and that pretty much sums up France’s attempt to sell cars in America. Okay, there’s Bugatti today, but it’s not what one would call a mass-market brand. The French car with mass appeal sold in the U.S. was the Peugeot 405, and one could say it was a valiant but ultimately unsuccessful effort.



Peugeot

Off to a Great Start


The Peugeot 405 was introduced in Europe in 1987 and later bagged the 1988 European Car of the Year award by a massive 212-point margin between it and the second-place Citroën AX. It’s not like the class of ’88 was short on talent or significance either, with notable cars including the Alfa Romeo 164, BMW 5 Series, Honda Prelude, and Toyota Corolla, to name a few.

So far, so good, and Peugeot needed that, as it had just come off a very difficult period. The smaller 205 had rescued the company from the brink in 1983, and the 405 was proof that the French automaker’s upswing was no fluke. Considering it was based on a five-year-old Citroën model at the time, the BX, Peugeot made it work.



Peugeot

Next Stop: The U.S. of A


Peugeot didn’t just want the 405 to succeed in Europe; it wanted it to be a truly global model. That meant the company also had its sights on North America, pinning its hopes on the 1988 European Car of the Year winner to be the one to turn its fortunes around across the Atlantic and finally turn Peugeot into a household name.

Before the 405’s American debut, Peugeot had a steady but not exactly wide presence in the U.S. Its first official model in America was the 403 in the late ’50s, followed by the 404 of the ’60s. The ’70s saw the introduction of the 504, 304, and 604, and some might remember that the 504 was once used as taxis in New York City. As the 304 and 604 flopped, the 505 represented the Peugeot name in the ’80s.

The 405 was meant to show North American consumers that Peugeot was ready for the late ’80s and the ’90s with its thoroughly modern design and solid credentials. Unfortunately, we all know what eventually happened.



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The U.S.-Spec 405


The Peugeot 405 made its North American debut in late 1988 for the 1989 model year with three trims available. There was the base 1.9 DL, followed by the mid-spec 1.9 S, and topped by the revvy Mi16 with its 16-valve engine. The wagon was introduced a little later, but the fact that both body styles were offered showed Peugeot’s ambitions and optimism.

Anyway, back to the car. The differences between the European and American 405s were mainly around compliance. U.S. versions had longer 5-mph bumpers, smaller license plate holders at the back, and emission-control systems that choked power. The 8-valve 1.9 liter in the DL and S could’ve made 125 hp, but it’s down to 110 hp after its boat ride from France. The same applied to the Mi16, with power downrated from 160 hp to 150 hp in the U.S. model.



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The Praises Were There, But the Sales Were Not


Highly lauded by European critics, the 405 received similar praise stateside, especially for the sportier Mi16. The chassis threaded the fine line between comfort and dynamics, and the Pininfarina-designed exterior was the cherry on top. It drove great, rode fantastically, looked good, and undercut the Germans by a good margin. Some even dared call it a true 3 Series rival. There was a lot to like about it, but several factors effectively made it sales-proof.

Per Hemmings, prices in ’89 kicked off at $14,500 for the DL, and it was $17,700 for the better-equipped S. As for the sporty Mi16, that would set you back $20,700. Adjust that for inflation, the base model starts close to $40,000 in today’s money. It undercut the Germans, but the Japanese were making more compelling midsize sedans by offering better value, more power, and, let’s be honest, greater reliability than the Peugeot.

The trouble was, it was priced like a premium product in America, but its roots are far more humble in Europe. Over there, a 405 would be purchased the same way an Average American would buy an Accord, Camry, or Taurus from the same era. A highly competent sedan, but not a premium one.

Also, by the late ’80s, Peugeot’s dealer network in North America had dwindled, and its future wasn’t looking that bright anymore. That didn’t exactly inspire buyer confidence despite the seal of approval from critics at the time. And while reviewers loved the way it drove, the thin and flimsy interior materials betrayed the car’s premium positioning in the U.S. Mechanically, the car was reliable, especially those equipped with manual transmissions, but the car was occasionally marred by electrical gremlins and cooling issues.


Life After America


Peugeot tried to spice up the image of the 405 by sending one up to the Pikes Peak International Hillclimb with rally ace Ari Vatanen behind the wheel. Okay, it was more of an evolution of the 205 T16 Group B rally car, but the body was made to resemble the 405. Some of you might remember the Climb Dance short film that showed snippets of Vatanen’s record-winning run.

But despite the praise, the Car of the Year title, and the Pikes Peak win, none of them did anything to lift the 405’s sales. Limited serviceability due to the minuscule dealer network didn’t help matters, and in the end, just 11,398 405s were sold in the U.S and less than 2,000 of those were wagons. Peugeot left America in 1991, and the planned return was scrapped, so mainstream French cars for sale in the USA aren’t happening any time soon.

Outside of North America, the 405 thrived. Over 2.5 million were sold in Europe, and the 405 wasn’t just built in its home country, either. There was also production in England, Poland, Chile, Argentina, Taiwan, Thailand, Egypt, Zimbabwe, Iran, and Azerbaijan. In fact, the car outlived most of its successors: while European production ended in 1997, the very last one was made in Azerbaijan in 2023, with over 5 million cars built.



Peugeot



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