Although the Peugeot factory has been in manufacturing for many centuries it was not until 1889 that they decided to enter into the automobile industry and begin to sell their cars through dealerships. Peugeot originally manufactured crinoline dresses which used steel rods for rigidity. The making of these circular rods eventually led into making bicycles in the nineteenth century; the most famous being the Peugeot 'Le Grand Bi' (penny farthing) bicycle.

Armand Peugeot as the company was originally known would not enter the automobile market until late in the nineteenth century with a three wheeled steam driven motor car. Only four of these seminal cars were made and as such, not many made it to the forecourts of dealerships. Steam however was soon forgotten by Peugeot in favour of internal combustion with the help of Gottlieb Daimler.

Peugeot have always been a leader in the industry and were in fact the first company to fit rubber tyres to their cars; although these were not pneumatic and instead made of solid rubber. It was at this point that Peugeot entered motor racing, despite the cars resembling horse drawn carriages and still being steered by a tiller.

By the turn of the nineteenth century dealerships were sprouting with three hundred cars being sold in 1899 out of a total of 1200 cars sold in the whole of France. Peugeot not forgetting their bicycle heritage also produced a motorbike at the turn of the century and continue to do so to this day. The success of the company as a national institution was seemingly already assured by 1903 with over half of France's car sales.

The company divided its energies during the twenties, one focussing on the bikes and the other focussing on the cars. Throughout this period Peugeot continued to put affordable cars onto their dealership forecourts with the Type 201 being the cheapest car in France. Innovation was always a consistent theme; the development of retracting roof was an attempt to coax rich Frenchmen with stylistic designs and luxurious cars. The curvaceous bodies and sloping headlights of this period would be features in Peugeot design for generations after.

During the fifties Peugeot began to open dealerships in America trying to capture some of the booming economy in the post war states. It was at this point that many collaborations with other European companies occurred, such as a combining efforts with Renault in 1966 and Volvo in 1972. The company also utilised the exquisite designing abilities of the Pininfarina house to make models even more attractive to buyers.

The seventies saw a major move by Peugeot to take over rival French manufacturer, Citroen. This meant an even more extensive number of dealerships at their disposal and meant that with the formation of PSA (Peugeot Societe Anonyme) Peugeot were part of the biggest car manufacturer in France. PSA worked towards keeping the company identities separate throughout this period and the distinctive flare of each brand continues to this day.

With ongoing growth and successful dealerships throughout Europe, Peugeot were able to purchase the European division of Chrysler. This had mixed success and in fact caused trouble for the PSA's financial position. Despite a poor period throughout the eighties Peugeot were able to recoup the losses from the previous decade and achieve a strong position throughout the nineties. Despite losing the American sales base in this period the company still does well in Europe and will continue to do so with innovative technologies and quaint French styling.

Ultimately the company has a rich and diverse heritage; after a relatively modest beginning manufacturing dresses they have managed to become one of the automotive powerhouses of Europe. In today's highly competitive car industry they will be hard pushed to remain popular and continue to grow as they had done in the previous century.