Skip to main content
SpringerLink
Log in

PSA Peugeot Citroen’s Car Plants in Spain Part I: 1951–1989

  • Chapter
  • First Online:
The Automotive Industry and European Integration

  • 443 Accesses

Abstract

This chapter covers the histories of PSA’s Vigo and Madrid car plants through 1989. It begins with Vigo’s origins as Citroen Hispania Balaidos, including Peugeot’s absorption of Citroen in 1974. It then reviews PSA Madrid’s beginnings as Barreiros Diesel in the capital city’s Villaverde district, its expansion to incorporate a Chrysler car plant in 1965, and PSA’s decision to acquire Chrysler’s European operations in 1978. The remainder of this chapter focuses on PSA’s 1979–1989 efforts to integrate these two Spanish factories into its European production network. This then provides a foundation for Chap. 17.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 59.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 79.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Fernandez-De-Sevilla (2010).

  2. 2.

    New York Times (1957); Reuters (1957); Georgano (2000). Initially granted free trade rights, on October 24, 1916, Barcelona officially became an FTZ, on June 11, 1929, under the Royal Decree/Law for Ports, Zones, and Free Trade. Cadiz was authorized as a free trade area in 1920 and was officially designated as an FTZ on April 12, 1933 (Spain 2017–2018).

  3. 3.

    Reuters (1957); PSA Vigo (2018).

  4. 4.

    Catalan (2000); PSA Vigo (2018).

  5. 5.

    WSJ (1968a, c); Catalan (2000); Georgano (2000); PSA Vigo (2018).

  6. 6.

    WSJ (1968a, c); Georgano (2000); Spain (2017–2018).

  7. 7.

    WSJ (1968b, c, 1970b, 1972) Hess (1968); UPI (1973); Georgano (2000); Volpato (2003).

  8. 8.

    WSJ (1968a, c, 1970b, 1972, 1973b); New York Times (1973); Catalan (2000); Georgano (2000); PSA Vigo (2018).

  9. 9.

    New York Times (1970); WSJ (1970b, 1972, 1974a); UPI (1973); Farnsworth (1974); Catalan (2000); Georgano (2000); Volpato (2003).

  10. 10.

    Farnsworth (1972); WSJ (1972, 1973a); New York Times (1973).

  11. 11.

    UPI (1973); WSJ (1973b); Farnsworth (1974); Loubet (1998); Jacobs (2016).

  12. 12.

    Farnsworth (1974); Freund (1974a); Loubet (1998).

  13. 13.

    Ibid.

  14. 14.

    Freund (1974a); WSJ (1974a, b, d).

  15. 15.

    Freund (1974b); UPI (1974); WSJ (1974c, 1976a); Loubet (1998).

  16. 16.

    Ward’s (1956–2018); UPI (1974); Catalan (2000); Georgano (2000); Citroen UK (2018); Freyssenet (2018); PSA Vigo (2018).

  17. 17.

    WSJ (1976a, b,) Jacobs (2016).

  18. 18.

    WSJ (1976c).

  19. 19.

    Ward’s (1956–2018); Morgenthaler (1978); Loubet (2003); PSA Vigo (2018).

  20. 20.

    Georgano (2000); Fernandez-de-Sevilla (2014); Spain (2017–2018); PSA Madrid (2018).

  21. 21.

    Fernandez-de-Sevilla (2014).

  22. 22.

    UPI (1963b, 1964); Georgano (2000); Fernandez-de-Sevilla (2014); Spain (2017–2018).

  23. 23.

    Stetson (1958); AP (1958); UPI (1963a, b, 1964); Farnsworth (1964, 1970); WSJ (1964, 1970a); Georgano (2000); Thompson et al. (2018). In 1958, Renault produced 369,610 passenger cars, Simca 206,781, Peugeot 193,297, and Citroen 178,860; see Freyssenet (2018).

  24. 24.

    Farnsworth (1964); WSJ (1964); Georgano (2000); Hyde (2003). In addition, Rootes was (1) producing Commer and Karrier commercial vehicles at its Luton and Dunstable plants in Bedfordshire, U.K., (2) outsourcing Sunbeam Tiger sports car production to Jensen Motors in West Bromwich, Staffordshire, and (3) sending CKD kits to its Port Melbourne, Victoria, Australia, plant and six other licensed locations worldwide; see Thoms and Donnelly (1985); Wood (1988).

  25. 25.

    Lee (1970); Thoms and Donnelly (1985); Georgano (2000); Wood (1988); Hyde (2003).

  26. 26.

    Hofmann (1965); AP (1965, 1967); PSA Madrid (2018).

  27. 27.

    AP (1967); WSJ (1970a); Fernandez-de-Sevilla (2014); PSA Madrid (2018).

  28. 28.

    Chrysler Fevre became VW Argentina in 1980.

  29. 29.

    For this paragraph, Catalan (2000); Georgano (2000); Fernandez-de-Sevilla (2014); Allpar.com (2018); PSA Madrid (2018); Thompson (2018a, b).

  30. 30.

    Ibid.

  31. 31.

    Ward’s (1956–2018); Salpukasb (1975); Thoms and Donnelly (1985); Wood (1988); Hyde (2003).

  32. 32.

    Ibid.

  33. 33.

    Ibid.

  34. 34.

    Ward’s (1956–2018); AP (1976); Thoms and Donnelly (1985); Wood (1988); Jacobs (2016).

  35. 35.

    Ward’s (1956–2018); Wood (1988); Catalan (2000); Fernandez-de-Sevilla (2014); Allpar.com (2018); Thompson (2018a, b); Thompson and Adams (2018); PSA Madrid (2018). By 1977, the Alpine also was assembled from kits at Todd Motors in Porirua, New Zealand.

  36. 36.

    Ward’s (1956–2018); Apcar and Kessler (1978); Reuters (1978); UPI (1979); Thoms and Donnelly (1985); Wood (1988); Loubet (1998, 2003); Catalan (2000); Hyde (2003); PSA Madrid (2018).

  37. 37.

    Reuters (1978); UPI (1979).

  38. 38.

    Ward’s (1956–2018); Rohatyn (1980); Hyde (2003); Jacobs (2016). In that year, Fiat-Chrysler began producing Jeep Renegade subcompact crossovers at FCA Melfi in Italy (i.e., a restyled Fiat 500X 4×4 variant).

  39. 39.

    Ward’s (1956–2018); Georgano (2000); Loubet (2003); PSA Madrid (2018).

  40. 40.

    Ibid.

  41. 41.

    Kessler (1981); Thoms and Donnelly (1985); Catalan (2000); Fernandez-de-Sevilla (2014); PSA Madrid (2018).

  42. 42.

    WSJ (1980).

  43. 43.

    WSJ (1980); Kessler (1981); Thoms and Donnelly (1985).

  44. 44.

    Loubet (1998, 2003).

  45. 45.

    WSJ (1977); Loubet (1998, 2003); Georgano (2000); Marsh (2006a); Thompson (2011); Jacobs (2017). Oltcit was a portmanteau for Romania’s historic OLTena region and CITroen.

  46. 46.

    Georgano (2000); Marsh (2006b); PSA Madrid (2018); PSA Vigo (2018).

  47. 47.

    Ward’s (1956–2018); Loubet (1998, 2003); Fernandez-de-Sevilla (2014); PSA Madrid (2018); PSA Vigo (2018).

  48. 48.

    Tagliabue (1985); Loubet (1998, 2003).

  49. 49.

    Ward’s (1956–2018); Loubet (1998, 2003); Georgano (2000); Gonzalez (2001); Freyssenet (2009); Fernandez-de-Sevilla (2014); PSA Madrid (2018); PSA Vigo (2018).

  50. 50.

    Ibid.

  51. 51.

    Ibid.

  52. 52.

    Ibid.

  53. 53.

    Georgano (2000); Gonzalez (2001); Aubry (2018).

References

  • Allpar.com (2018) Chrysler and Dodge of Spain—and Barreiros Diesel, http://www.allpar.com/world/spain.html, last 5 October.

  • AP (1958) Chrysler Forms Unit; New International Arm Will Develop World Markets. New York Times, 13 September, 31.

    Google Scholar 

  • AP (1965) Auto Unit Opened in Spain. New York Times, 24 July, 29.

    Google Scholar 

  • AP (1967) Chrysler Invests More in Barreiros. New York Times, 16 October, 71.

    Google Scholar 

  • AP (1976) British Chrysler Workers Accepting Plan for Rescue. New York Times, 1 January, 25.

    Google Scholar 

  • Apcar L and F Kessler (1978) Chrysler Plans to Sell All European Units to Peugeot for $426 Million Cash. Wall Street Journal, 11 August 3.

    Google Scholar 

  • Aubry A-L (2018) Usine Citroen de Levallois, http://2cv-legende.com/histoire-de-la-2cv/usine-de-levallois-2cv, last 17 October.

    Google Scholar 

  • Catalan J (2000) La Creacion de la Ventaja Comparativa en la Industria Automovilistica Espanola, 1898–1996. Revisto de Historia Industrial, 18, 131–154.

    Google Scholar 

  • Citroen UK (2018) Discover the Citroen Story, History, https://www.citroen.co.uk/about-citroen/our-brand/history, last 14 October.

  • Farnsworth C (1964) Rootes Bid Stirs British Tempest. New York Times, 6 June, 27, 35.

    Google Scholar 

  • Farnsworth C (1970) Stiff Curbs on Credit Restricts Sales of Simca. New York Times, 25 January, 145.

    Google Scholar 

  • Farnsworth C (1972) Fiat – Citroen Association Runs into Trouble. New York Times, 7 November, 47.

    Google Scholar 

  • Farnsworth C (1974) France’s Citroen, in Financial Trouble, May be Bailed Out by Ford. New York Times, 8 May, 61, 67.

    Google Scholar 

  • Fernandez-De-Sevilla T (2010) Industrializando la Espana Interior: El Ensamblaje del Renault 4CV en la ‘FASA de Valladolid, 1951–1958. Investigaciones de Historia Economica, October, 133–162.

    Google Scholar 

  • Fernandez-De-Sevilla T (2014) Inside the Dynamics of Industrial Capitalism: The Mass Production of Cars in Spain, 1950–1985. Revista de Historia Economica, 32 (2), 287–315.

    Article  Google Scholar 

  • Freund A (1974a) Deal by Peugeot and Citroen Due: New York Times, 25 June, 49, 55.

    Google Scholar 

  • Freund A (1974b) Merger Combines Peugeot, Citroen: French Loan Aids in Deal by Carmakers—Berliet and Saviem Trucks Unite. New York Times, 4 December, 61.

    Google Scholar 

  • Freyssenet M (2009). PSA: The Difficulties of a ‘Volume and Diversity’ Profit Strategy. In M Freyssenet (ed.), The Second Automobile Revolution: Trajectories of the World Carmakers in the 21st Century. (New York: Palgrave Macmillan), pp. 246–266.

    Chapter  Google Scholar 

  • Freyssenet M (2018) Vehicle Production Statistics for Renault, Peugeot, Citroen, and Simca, 1945–2016, http://www.freyssenet.com, last 7 October.

  • Georgano N ed (2000) The Beaulieu Encyclopedia of the Automobile, Vol. 1 and 2 (Chicago: Fitzroy Dearborn).

    Google Scholar 

  • Gonzalez P (2001) Seat: Fundacion, Desarrollo y Privatizacion de una Empresa Automovilistica en Espana. Madrid: Fundacion Empresa Publica.

    Google Scholar 

  • Hofmann P (1965) Chrysler and Spain Concern to Make Dodge Dart in Madrid. New York Times, 20 January, 51, 35.

    Google Scholar 

  • Hess J (1968) Citroen-Fiat Veto Stirs Criticism. New York Times, 12 October, 53, 61.

    Google Scholar 

  • Hyde C (2003) Riding the Roller Coaster: A History of Chrysler Corporation (Detroit: Wayne State University).

    Google Scholar 

  • Jacobs A J (2016) The ‘New Domestic’ Automakers in the U.S. and Canada: History, Impacts, and Prospects (Lanham, MD: Lexington Books).

    Google Scholar 

  • Jacobs A J (2017) Automotive FDI in Emerging Europe: Shifting Locales in the Motor Vehicle Industry (London: Palgrave Macmillan).

    Book  Google Scholar 

  • Kessler F (1981) Peugeot to Close Auto Plant in Scotland, Estimates 1980 Loss at $404 Million. Wall Street Journal, 12 February, 29.

    Google Scholar 

  • Lee J (1970) Rootes Reports a 6-Month Loss. New York Times, 2 May, 41, 58.

    Google Scholar 

  • Loubet J (1998) Peugeot Meets Ford, Sloan, and Toyota, in M Freyssenet, A Mair, K Shimizu, and G Volpato (eds.), One Best Way? Trajectories and Industrial Models of the World’s Automobile Producers (New York: Oxford), pp. 338–364.

    Google Scholar 

  • Loubet J (2003) The Cautious and Progressive Internationalization of PSA Peugeot Citroen, in M Freyssenet, K Shimizu, and G Volpato (eds.), Globalization or Regionalization of the European Car Industry? (New York: Palgrave Macmillan), pp. 152–169.

    Google Scholar 

  • Marsh J (2006a) Non-French Vehicles: Oltcit and Axel, Citroenet, http://www.citroenet.org.uk/foreign/romania/oltcit-1.html, last 15 October 2018.

  • Marsh J (2006b) Passenger Cars: Citroen Visa, Citroenet, http://www.citroenet.org.uk/passenger-cars/psa/visa/visa01.html, last 15 October 2018.

  • Morgenthaler E (1978) Quiet, Family-Controlled Peugeot Drives Toward Top Sport in Europe’s Car Industry.

    Google Scholar 

  • New York Times (1957) Citroen to Build in Spain, 3 January, 56.

    Google Scholar 

  • New York Times (1970) Fiat Will Enlarge Citroen Ownership, 28 July, 78.

    Google Scholar 

  • New York Times (1973) The European Auto Battle, 10 June, 176.

    Google Scholar 

  • PSA Madrid (2018) PSA Madrid Website, https://site.groupe-psa.com/madrid/es/, last 23 October.

  • PSA Vigo (2018) PSA Vigo Website, https://site.groupe-psa.com/vigo/es/, last 23 October.

  • Reuters (1957) Spain to Build Citroen. New York Times, 24 September, 55.

    Google Scholar 

  • Reuters (1978) Peugeot Holders Set Chrysler Deal. New York Times, 22 December, D4.

    Google Scholar 

  • Rohatyn F (1980) A Better Way to Bail Out Chrysler. New York Times, 13 January, F16.

    Google Scholar 

  • Salpukasb A (1975) Deal with British Pleases Chrysler. New York Times, 17 December, 83.

    Google Scholar 

  • Spain (2017–2018) Author Site Visits, Car Factory Tours, and Correspondents with Firm Representatives in Spain, 28 March 2017 to 18 September 2018.

    Google Scholar 

  • Stetson D (1958) Chrysler Enters Small Car Field. New York Times, 2 August, 35.

    Google Scholar 

  • Tagliabue J (1985) Europe’s High Stakes Auto Battle. New York Times, 2 June, C4.

    Google Scholar 

  • Thompson, A (2011) Cars of Eastern Europe: The Definitive History (Newbury Park, CA: Haynes).

    Google Scholar 

  • Thompson A (2018a) Chrysler 180 and 2-Litre in Spain (Barreiros), http://www.allpar.com/cars/adopted/barreiros.html, last 5 October.

  • Thompson A (2018b) The Simca 1204 (US) and Simca 1100 — Most Popular Car in France, http://www.allpar.com/cars/adopted/simca/1204.html#1204, last 5 October.

  • Thompson A and K Adams (2018) The Chrysler Alpine, Simca 1307/1308, Talbot 1510, and Talbot Solara, http://www.allpar.com/cars/adopted/simca/1204.html#1204, last 5 October.

  • Thompson A, Wilf, and M Sealey (2018) Simca (Societe Industrielle de Mecanigue et Carrosserie Automobile), http://www.allpar.com/cars/adopted/simca/index.html, last 5 October.

  • Thoms D and T Donnelly (1985) The Motor Car Industry in Coventry Since the 1890’s (London: Croom Helm).

    Google Scholar 

  • UPI (1963a) Chrysler Gets Simca Control. New York Times, 18 January, 9.

    Google Scholar 

  • UPI (1963b) Chrysler Buys One-Third of Spanish Auto Builder. St. Petersburg Times, 2 October, 5C.

    Google Scholar 

  • UPI (1964) Chrysler Buys French Auto Firm. Pittsburgh Press, 2 February, Section-4, p. 8

    Google Scholar 

  • UPI (1973) Fiat Sells Citroen Shares. New York Times, 26 June, 75.

    Google Scholar 

  • UPI (1974) Peugeot in Citroen Move. New York Times, 7 December, 41.

    Google Scholar 

  • UPI (1979) Chrysler Sells Unit to Peugeot-Citroen. New York Times, 3 January, D4.

    Google Scholar 

  • Volpato G (2003) Fiat Auto: From ‘Forced Internationalization Towards Intentional Globalization, in M Freyssenet, K Shimizu, and G Volpato (eds), Globalization or Regionalization of the European Car Industry? (New York: Palgrave Macmillan), pp. 132–151.

    Google Scholar 

  • Ward’s (1956–2018). Ward’s Automotive Yearbook, 1956 to 2018 (Detroit: Ward’s Communications).

    Google Scholar 

  • Wood J (1988) Wheels of Misfortune: The Rise and Fall of the British Motor Industry (London: Sidgwick & Jackson).

    Google Scholar 

  • WSJ (1964) Chrysler to Buy a Large Interest in Rootes Motors. Wall Street Journal, 5 June, 4.

    Google Scholar 

  • WSJ (1968a) Rumors of Link of Fiat, Citroen Still Circulate. Wall Street Journal, 30 September, 10.

    Google Scholar 

  • WSJ (1968b) De Gaulle Vetoes Bid by Fiat to Buy Interest in Citroen. Wall Street Journal, 11 October, 24.

    Google Scholar 

  • WSJ (1968c) Fiat, Citroen Agree that Italian Car Firm will Get Indirect Interest in French Concern. Wall Street Journal, 28 October, 5.

    Google Scholar 

  • WSJ (1970a) Simca is Now Chrysler-France. Wall Street Journal, 21 May, 8.

    Google Scholar 

  • WSJ (1970b) Fiat Seeks to Increase its Holding in Citroen to Up to 20% from 15%. Wall Street Journal, 1 June, 7.

    Google Scholar 

  • WSJ (1972) Fiat-Citroen Link of 4 Years May End as Both Sour on Plan. Wall Street Journal, 21 May, 8.

    Google Scholar 

  • WSJ (1973a) Fiat Sales Jumped 15% to $3.58 Billion in 1982. Helped by Higher Prices. Wall Street Journal, 4 January, 6.

    Google Scholar 

  • WSJ (1973b) Citroen and Fiat Let 1968 Agreement Calling for Partnership Lapse. Wall Street Journal, 13 April, 18.

    Google Scholar 

  • WSJ (1974a) Peugeot, Citroen Set Plan to Merge Auto Operations, 25 June, 4

    Google Scholar 

  • WSJ (1974b) Peugeot, Citroen Win French Promise of Aid for Proposed Merger, 27 June, 30.

    Google Scholar 

  • WSJ (1974c) France to Lend its Auto Industry Over $310 Million, 4 December, 22.

    Google Scholar 

  • WSJ (1974d) U.K. Plans to Aid British Leyland in Swap for Stake, 9 December, 20.

    Google Scholar 

  • WSJ (1976a) Peugeot Gets Control of Citroen by Buying Michelin’s Holdings, 9 April, 10.

    Google Scholar 

  • WSJ (1976b) Peugeot Plans to Get Balance of Citroen in Exchange of Stock, 13 May, 13.

    Google Scholar 

  • WSJ (1976c) Peugeot Says Spain Authorizes Output of Cars Next Year, 30 December, 5.

    Google Scholar 

  • WSJ (1977) Iran Firm to Build Cars under Contract Signed by PSA Peugeot Unit, 18 November, 39.

    Google Scholar 

  • WSJ (1980) Peugeot’s Citroen Unit Plans to Close Factory in Belgium. Wall Street Journal, 18 December, 32.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Sociology, East Carolina University, Greenville, NC, USA

    A. J. Jacobs

Authors
  1. A. J. Jacobs
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Jacobs, A.J. (2019). PSA Peugeot Citroen’s Car Plants in Spain Part I: 1951–1989. In: The Automotive Industry and European Integration. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-17431-6_16

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-17431-6_16

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-17430-9

  • Online ISBN: 978-3-030-17431-6

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation