A tale of two Peugeots: How a family feud split the company
“Efforts will be made to liquidate as best as possible the equipment, patents, goods in production and supplies. Consequently, from this moment on, not the slightest expenditure shall be incurred other than those indispensable to the stated objective of liquidation.”
With annual bicycle sales rocketing past 9000 and car sales not yet exceeding 100, conservatism had won out. Armand promptly quit the family firm to found Société Anonyme des Automobiles Peugeot, this being allowed to use the famous name and lion logo on the condition that it would make nothing with a saddle, while Le Fils de Peugeot Frères would make nothing with a bench seat.
The new factory was opened at Audincourt in April 1897, creating some 400 jobs – and was expanded rapidly, because demand instantly outstripped supply by four to one. Unsurprisingly, it seems that the distinction between the two Peugeot firms wasn’t popularly recognised.
For instance, in 1899 we reported that when workers at Valentigney went on strike over a foreman’s sacking for ‘misbehaviour’, those at Audincourt walked out in sympathy. As the car firm grew, the other side of this divided family began to worry about slim margins on their bicycles and lower than anticipated demand for their new motorcycles.
And so after Eugène’s retirement, his successors approached Armand with a request to cancel their non-competition clause for F300,000. Protracted negotiations followed as the two sides’ lawyers quibbled over which car types and branding would be allowed, but ultimately Armand accepted the proposal.
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