Chrysler Europe - Decline and Sale To Peugeot

Decline and Sale To Peugeot

In 1978, Chrysler Europe was sold for a nominal US$1 to Peugeot, who took on the liability for the division's huge debts as well as its factories and product line, with the former Chrysler models in Britain and Simca models in France both using the resurrected Talbot marque.

But within eight years, the French giant scrapped the Talbot marque on passenger cars due to falling sales - though retaining it for commercial vehicles until 1992. The car meant to succeed the Chrysler Horizon became Peugeot 309 on its launch at the end of 1985, and in 1983, Peugeot sold its share in Matra together with the Chrysler-initiated design of an MPV to Renault, where the design lives on as Renault Espace. Peugeot took little interest in heavy commercial vehicles and the production of former British and Spanish Dodge models passed to Renault Trucks. The Rootes factory in Dunstable, England ceased manufacture of trucks, ending with the Renault Midliner in the mid 1990's. In 2009 the staff of Renault Trucks (RVI), part of the Volvo Group since 2001, relocated from the former Rootes site to a new building. The former factory has since been demolished.

Chrysler on the other hand, retained the design rights to the Avenger and those of the US-version Horizon. Peugeot were therefore compelled to retain the Chrysler "pentastar" badge on the Avenger, whilst Chrysler prepared to shift production of the car to Argentina when European sales ended in 1981. The American version of the Horizon continued to be produced in the United States as the Plymouth Horizon and Dodge Omni until 1990, three years after the last European model was made.

The former Simca and Rootes assembly plants in Poissy and Ryton-on-Dunsmore, respectively, continued under the ownership of Peugeot, but Rootes' Linwood plant in Scotland was a casualty of the takeover - closing its doors in 1981. The former Rootes Ryton plant was closed in December 2006, with production of the Peugeot 206 (made there since the summer of 1998) moved to Slovakia. Since 1985, it had also produced Peugeot's 309, 405 and 306 ranges. It has since been demolished to make way for new factories.