Innovation Through Crisis

The 1970s oil crises forced French manufacturers to innovate in efficiency. Renault and Peugeot's early diesel work paid dividends. Citroën developed ultra-aerodynamic designs like the CX. But the period also saw consolidation, with Peugeot acquiring Citroën in 1976, creating PSA Group. Many feared this would end Citroën's innovative tradition.

Instead, sharing platforms and components freed both brands to pursue their strengths. Citroën could take risks with designs like the BX and XM, knowing Peugeot's conventional models provided financial stability. The arrangement also enabled investment in new technologies like multiplexed electrical systems and advanced materials.

The 1980s brought new challenges from Japanese manufacturers. French companies responded not by copying Japanese methods wholesale but by adapting them to French conditions. Quality improved dramatically while maintaining design distinctiveness. The Renault Espace, launched in 1984, created the European minivan segment by reimagining family transportation. Built on a passenger car platform with innovative composite panels, it offered van utility with car dynamics.