Citroen History
Citroen is a French car manufacturer and was founded in 1919 by Andre Citroen. Since 1976 Citroen has been part of PSA Peugeot Citroen with its headquaters in Paris.
Citroen Launched the worlds first mass production front wheel car in 1934 with the Traction Avant. André Citroën built armaments for France during World War I and after the war he had a factory and no product. In 1919 the business started to produce automobiles beginning with the conventional type A. Citroen had a keen eye for marketing and used the Eiffel tower as the worlds largest advertising sign.
Achieving quick development of the Traction Avant and its production facilities at the same time was too costly and overly ambitious, causing the financial ruin of the company. In 1934, debt forced the company into foreclosure and it was then taken over by its biggest creditor, the tire company Michelin.
During the second world war Citroën researchers continued their work in secret and developed the concepts that were later brought to market in the 2CV and DS.This began a period of unusual brand loyalty normally seen in the automobile industry only in niche brands, like Porsche and Ferrari.
Citroën was one of the early pioneers of the now widespread trend of aerodynamic automobile design, which helps to reduce fuel consumption and improve high-speed performance by reducing wind resistance. The firm began using a wind tunnel in the 1950s.
1968 saw a restructuring of Citroën’s worldwide operations under a new holding company, Citroën SA. Michelin, Citroën’s long-time controlling shareholder, sold a 49% stake to FIAT, in what was referred to as the PARDEVI agreement (Participation et Développement Industriels).
Citroën was weak and unable to withstand the softening of the automobile market that accompanied the 1973 oil crisis. That year FIAT withdrew from PARDEVI and returned its 49% stake to Michelin. This was an ominous sign of things to come and, less than a year later, Citroën went bankrupt. The French government feared large job losses and arranged talks between Michelin and Peugeot, in which it was decided to merge Automobiles Citroën and Automobiles Peugeot into a single company. In 1974, Peugeot purchased 38.2% of Citroën and became responsible for managing the combined activities, in particular their research, purchasing, and investments departments.
The takeover was completed in May 1976, as Peugeot SA purchased a 90% stake of Citroën SA and the companies were combined into a holding company, known as PSA Peugeot Citroën.
PSA gradually eliminated Citroën’s ambitious attitude to engineering and styling in an effort to rebrand the marque as an economy brand. In the 1980s, Citroën models were increasingly Peugeot-based, which was part of a worldwide motor industry trend called “platform sharing.” The 1982 BX used the hydropneumatic suspension system and still had a Citroënesque appearance, while being powered by Peugeot-derived engines and using the floorpan later seen on the Peugeot 405. By the late 1980s, many of the distinctive features of the marque had been removed or diluted - the AX GT, for example was noted by contemporary journalists for its poor ride quality, an unusual attribute for the brand.
The ubiquitous and versatile 2CV workhorse was finally killed off in 1990, without replacement. Companies like Chrysler with the CCV concept car, Toyota with the Scion xB and Honda with the Element have recognized the 2CV concept and translated it to the modern era. More recently, Citroën has introduced the C3 Pluriel, an unusual convertible with strong allusions to the 2CV, both in body style (such as the bonnet) and in its all-round practicality. A “retro style” C3-based, post-modern 2cv like the new VW Beetle and BMW MINI is under active consideration by Citroën.
The Pluriel is but one example of Citroën’s return to innovation, after launching somewhat dull (although efficient) models throughout the 1990s. Other examples are the C2, C4, and C6. The introduction of newer models, such as the long-awaited CX replacement, the C6, indicates Citroën’s continued commitment to innovation in the 21st century. But the days of clean-sheet thinking and truly radical innovation are long gone. Being too avant-garde and too far ahead of public taste is too risky.
In 2003, Citroën sold 1,372,500 cars, according to the PSA Peugeot Citroën group’s 2003 annual report.
