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Peugeot is a major French car brand, part of PSA Peugeot Citroën. It is the second largest automaker in Europe, behind Volkswagen. Peugeots roots go back to pepper, salt and coffee mill manufacturing in 1842 and later bicycle manufacturing at the end of the 19th century. Its world headquarters are in Paris, Avenue de la Grande Armée, close to Porte Maillot and the Concorde Lafayette Hotel but the Peugeot company and family is originally from Sochaux, France. Peugeot retains a large manufacturing plant in Sochaux which is also home to the Peugeot Museum. The company also sponsors the Sochaux football club, founded in 1928 by a member of the Peugeot family: the club s arms contain a lion logo similar to Peugeots.

The group then took over the European division of Chrysler (which were formerly Rootes and Simca), in 1978 as the American auto manufacturer struggled to survive. Further investment was required because PSA decided to create a new brand for the entity, based on the Talbot sports car last seen in the 1950s. From then on, the whole Chrysler/Simca range was sold under the Talbot "b a d"ge until production of Talbot-branded passenger cars was shelved in 1986.

The flagship of this short-lived brand was the Tagora, a direct competitor to PSAs 604 and CX models. This was a large, angular saloon based on Peugeot 505 mechanicals.

Peugeot has had much success in international rallying, most notably in the World Rally Championship with the four-wheel-drive turbo-charged versions of the Peugeot 205, and more recently the Peugeot 206. In 1981, Jean Todt, former co-driver for Hannu Mikkola, Timo Mäkinen and Guy Fréquelin among others, was asked by Jean Boillot, the head of Automobiles Peugeot, to create a competition department for PSA Peugeot Citroën.[20] The resulting Peugeot Talbot Sport debuted its Group B 205 Turbo 16 at the 1984 Tour de Corse in May, and took its first world rally win that same year at the 1000 Lakes Rally in August, in the hands of Ari Vatanen.[21] Excluding an endurance rally where Peugeot were not participating, Vatanen went on win five world rallies in a row.

Peugeots domination continued in the 1985 season. Despite Vatanens nearly fatal accident in Argentina, in the middle of the season, his team-mate and compatriot Timo Salonen led Peugeot to its first drivers and manufacturers world championship titles, well ahead of Audi and their Audi Sport Quattro. In the 1986 season, Vatanens young replacement Juha Kankkunen beat Lancias Markku Alén to the drivers title and Peugeot took its second manufacturers title ahead of Lancia. Following FIAs banning of Group B cars for 1987, in May after Henri Toivonens fatal accident, Todt was outraged and even (unsuccessfully) pursued legal action against the federation.[20] Peugeot then switched to rally raids. Using the 205 and a 405, Peugeot won the Dakar Rally four times in a row from 1987 to 1990; three times with Vatanen and once with Kankkunen.