The French carmaker is contemplating launching a budget brand for Europe that would specialize in low-cost vehicles, according to a France's La Tribune. A new budget brand would be in keeping with Peugeot's desire to focus on emerging economies and boost its sales to two million units per year, and marketing low-cost models should be made easier if they are grouped together into a sub-brand.
There is also concern over low-cost models reflecting poorly on the Peugeot and Citroen brands, giving further weight to the idea of a new subsidiary brand. While the plan is still in contemplation, Peugeot may use one of the brands that it already owns rather than creating a new one. These include the 'Talbot' brand which Peugeot took over from Chrysler in 1978 and axed in 1992 following poor sales.