The family business was founded in 1810 by Jean-Frédéric and Jean-Pierre II Peugeot, during the transformation of the family hydraulic mill into a steel mill in a place called Sous-Cratet in the commune of Hérimoncourt (Doubs). Various branches of the family expanded into very diverse productions, but all were based on steel (tools, springs, umbrella ribs, corset frames, coffee mills, watch parts, bicycles, etc.).

The 203 was the first car produced after the Second World War. It was also the first unibody model with a hemispherical cylinder head and V-shaped valves, as well as the first PEUGEOT to be manufactured at over half a million units.

Named European Car of the Year in 1969, the 504 was PEUGEOT's longest-running model (3,700,000 units rolled out until 2006). Intended for a middle-class clientele, it also ranked highly in Africa and South America thanks to its endurance.

As a result of its style and stature, the 604 was adopted by the most senior government officials throughout Europe. The first commercial turbo diesel engine in Europe was also fitted in the 604.

For the second time in its history, PEUGEOT won European Car of the Year in 1988 with the 405, its new family car.