Chrysler/Peugeot era (1979–1985)
Chrysler Europe struggled to enter profitability for much of its existence, and had relied on government support to ensure its survival. With mounting pressure on its core North American business, the decision was taken by Chrysler's then CEO Lee Iacocca to offload the ailing European operations. The French Government persuaded both Renault and PSA Peugeot Citroën to bid for the company; as it was keen to keep Simca in domestic ownership.
In August 1978, PSA negotiated a deal with Chrysler to acquire Chrysler Europe for a nominal $1. Although PSA took responsibility for Chrysler Europe's considerable debts and liabilities, the move was a strategic one; acquiring Simca would remove a strong domestic competitor in the French market while gaining access to that company's expertise in small front wheel drive cars; while at the same time the old Rootes operations would give the company a stronger foothold in the United Kingdom – France's biggest export market where both Peugeot and Citroën lagged behind arch rival Renault. PSA formally took control of the old Chrysler Europe on 1 January 1979. To lead the new group, former British Leyland executive George Turnbull (who had just completed his secondment at Hyundai), was appointed as the managing director of the UK arm.
The Peugeot takeover saw the end of the Rootes' Chrysler Hunter production, but the Chrysler Avenger and Sunbeam (also both Rootes designs), and the Simca 1307 (Chrysler Alpine in UK), and Horizon continued rebadged as Talbots.
All former Chrysler products registered in Britain after 1 August 1979 bore the Talbot badge.[3] Talbot's UK branch manufactured the Alpine, Solara, and Horizon at its aging Ryton plant in Coventry, after the British-developed cars had all been retired, except for the largest revenue source of the UK arm at that time, building CKD kits of the Hillman Hunter to be sent to Iran where they were assembled as the Peykan.[4]
The last remaining car produced by the Rootes group, the Chrysler (previously Hillman) Avenger, remained in production as a Talbot until the end of 1981; production of the Avenger-derived Talbot Sunbeam also ended in 1981. The entry-level model in the Talbot range from December 1981 onwards was the Talbot Samba, a three-door hatchback based on the Peugeot 104.
In 1981, Peugeot began producing the Talbot Tagora, a boxy four-door saloon marketed as a rival to the Ford Granada and to the Vauxhall Carlton/Opel Rekord. But as sales were insufficient in both Britain and France, production ceased in 1983 after only 19,389 units were manufactured.
At the end of 1984, the Alpine hatchback and its related Solara saloon were re-badged Minx and Rapier, depending upon specification rather than body shape. The new names were inherited from the Rootes Group; Rootes had previously produced the Hillman Minx and Sunbeam Rapier. The new versions were produced until 1986. Former Rootes names are still revived occasionally; in 1982, there was a Talbot Solara "Sceptre" model, the name being inherited from the Humber Sceptre which was produced between 1963 and 1976.
Decline and Demise
In the UK, the Chrysler and Talbot marques had gained nearly 120,000 sales in 1979, only outsold by Ford and British Leyland. However, it then went into decline, not helped by the recession in the early 1980s, or by a lack of new models being launched. By 1985, however, after years of losses, PSA Peugeot Citroën began to question its three-brand strategy. The Talbot Tagora model failed in the marketplace; the Samba was essentially a decade-old design thanks to its Peugeot 104 parentage, whilst the ageing 1510/Alpine/Solara models overlapped with both the Citroën BX and forthcoming Peugeot 405.
At the eleventh hour, the decision was made to release the forthcoming Horizon replacement as the Peugeot 309 instead of Talbot Arizona. It was a controversial decision, because the British arm of the company believed there was greater brand loyalty to Talbot in the UK, with its historical connection to the Rootes Group. However, the decision to concentrate on the Peugeot brand prevailed, and the 309 became the first of a long line of British-built Peugeot models to be assembled at the Ryton plant. Partly because they were perceived as "British" (despite most of their content actually being imported from PSA's French factories), the 309 and the subsequent 405, 306 and 206 models were very successful in the UK market, and regularly featured among the country's top ten best-selling cars.
Around 1984, PSA had also considered launching a replacement for the Talbot Samba based on the platform of the Citroën AX, which was still under-development, but such was the success of the
