How foreign automakers got started in America

French giant PSA Group plans to re-introduce its Peugeot brand on the America market by 2026.

That’s a tall order. The Paris-based firm, owner of Peugeot, Citroën and Opel, needs to make cars that Americans want to buy while complying with a completely different set of safety and emissions regulations than the ones that govern its home market. Above all, it needs to find a failproof way to put its cars in the hands of customers and make sure that parts and service are both readily available.

PSA boss Carlos Tavares, one of the brightest minds in the industry, revealed his team has come up with a “creative and disruptive way” to distribute cars but he stopped short of revealing what he is planning. While we wait for more details, we’re taking a look at how European and Asian brands got their start in America:

Fiat (1910)

Fiat’s expansion plans during the early 20th century were at least as ambitious as Ford’s. It established an American division in 1908 and opened a factory next to the Hudson River in Poughkeepsie, New York, two years later. The plant closed in 1918 and it was purchased by Duesenberg.

Fiat models continued making their way to America in the subsequent decades but official imports didn’t start until 1957. That year, Fiat offered an Americanized 500 with pop-up headlights, standard and Multipla variants of the 600 and the four-door 1100. It sold nearly 40,000 cars in the US in 1959.

Today the Fiat brand itself isn't huge in the US (just 15,521 cars sold in 2018, a 0.09% market share), but the company is, having bought Chrysler for a song in the wake of the 2008 financial crisis. Note: Fiat 1912 model pictured.

Mercedes-Benz (1946)

Mercedes-Benz started exporting cars to America as soon as it rebuilt its Stuttgart factory in the aftermath of World War Two. Cars trickled in at first but sales grew as production increased in the late 1940s. Max Hoffman* became the American distributor for Mercedes in 1952 and he played an instrumental role in making the 300 SL (pictured) a reality. The model notably made its debut in New York, not in Frankfurt or Geneva.

Mercedes, like many European manufacturers, ended its agreement with Hoffman as its sales in the US increased. It formed an alliance with Studebaker in 1957 in a bid to expand its presence on the American market. Indiana-based Studebaker distributed Mercedes models until 1964. Mercedes-Benz of North America was formed in New Jersey the following year. Mercedes opened its first US factory at Vance, Alabama in 1997.

*For more on Hoffman and his important role in the story, please see the end of this feature

Austin (1947)

The Austin A40 began trickling into the United States in late 1947 through an official distributor located in New York City. More than 13,000 examples of the British car were sold in the United States and in Canada by August of 1948, a figure that made the A40 one of the most popular European imports in North America.

The two-door A40 started at $1595 (about $18,000 in 2019 money) while the four-door model cost a little bit more. It was joined by the family-friendly Countryman (pictured), the A90 and the A125 in 1949.

Jaguar (1947)

Jaguar turned its attention to the US market in 1947. Helped by independent importers, including Max Hoffman, it offered two- and four-door models powered by a 125 hp straight-six engine to American buyers. The first cars arrived from England in 1947 and it sold about 238 cars the following year.

The XK-120 (pictured) introduced in 1949 made Jaguar one of the most talked-about luxury brands in America. Unhappy about Hoffman's deal with rival Mercedes-Benz, Jaguar severed ties with the importer and began distributing its own cars in 1956. Hoffman received a commission for every Jaguar sold for years after the partnership ended.

Simca (1948)

France's Simca sent its first cars to the United States in 1948 but a complete lack of image, a small dealer network and an advertising strategy best described as low-key kept sales low. It sold 331 cars in 1948 and only 45 the following year. Its line-up initially included the 5, 6 and 8 models.

Essentially a pre-WW2 Fiat 500 built under license, the 5 (pictured) cost $987 (about $10,300 in 2019) in 1948.

Citroën (1949)

Citroën entered the American market in 1949. Its line-up initially consisted exclusively of the Traction Avant (pictured), which turned 15 that year. The firm’s American offensive started on the wrong foot. It sold 10 cars in 1949, 13 in 1950 and just five in 1951. Its cars were criticized as being too expensive, overly rudimentary and far too slow to meet the needs of American motorists.

Making the 2CV available didn’t help but the DS – which went on sale in the US for the 1957 model year – briefly boosted Citroën sales.

Renault (1949)

Renault sold a handful of cars in America in the early 1900s but its presence was tiny at best until New York-based John L. Green Operations started selling the 4CV in America in 1949. Offered in two trim levels, the tiny, rear-engined four-door sold on value alone. It could achieve 50mpg, according to period brochures, and it cost only $1035 (about $11,000 in 2019). It was cheaper than a Beetle and more efficient.

1551 American motorists bought a 4CV (pictured) in 1949. Renault established an official American division in 1956 and took steps to Americanize its cars. Annual sales soared to about 65,000 units in 1958. Renault later acquired American Motors Corporation, before selling it to Chrysler in 1987.

Volkswagen (1949)

Though members of the American military brought their personal Volkswagen Beetles to the US during the 1940s, Dutch businessman Ben Pon (pictured left) is widely credited as the first person who shipped one across the Atlantic in order to sell it. The first car he brought arrived in New York city in January 1949 and, somewhat surprisingly, sold quickly.

Pon brought a second Beetle to the US in 1949 and sold 270 examples in 1950. Max Hoffman also distributed the Beetle though it wasn't one of his most successful ventures and Volkswagen of America was officially founded in 1955. In 1965, VW sold 371,222 cars in the US.

VW inherited its first US factory, near Pittsburgh, from Chrysler in 1978, becoming the first foreign auto company to build cars in the US since Rolls-Royce did so in Springfield, Massachusetts, from 1921 to 1931.

Aston Martin (1950)

Aston Martin presented the DB2 (pictured) in May 1950 at the British motor show held in New York City. Pricing started at approximately $6000 (about $63,000 in 2019). By the late 1950s, four distributors located in New York City, Chicago, San Francisco, and Pasadena, respectively, independently sold Aston Martin’s cars in America.

The company established its headquarters in King of Prussia, Pennsylvania, in the early 1960s.

Ferrari (1950)

Racer and entrepreneur Briggs Cunningham allegedly imported the first Ferrari into America. It was a 1949 Spider brought over solely to race. Later in 1949, Luigi Chinetti – a racer and a close friend of Enzo Ferrari – opened the first Ferrari dealership in North America in Manhattan.

The US quickly became Ferrari’s biggest market because motorists were generally far wealthier than in Italy and had a healthy appetite for horsepower. Chinetti consequently carried a substantial amount of clout in Ferrari's Maranello HQ. Note: 1949 166MM pictured.

Porsche (1950)

Max Hoffman started importing the Porsche 356 (pictured) into America in 1950, shortly after production of the model started in Germany. He was highly qualified for the job but he likely wasn't asked to prove his credentials; he was a close friend of the Porsche family.

Hoffman helped Porsche gain a secure foothold in the US but the company outgrew his business in the late 1950s and started distributing its own cars in 1963.

BMW (1952)

BMW started sending the 501 (pictured) to America in 1952. Sales figures are lost to history but the German firm made 1645 cars in 1953 and exported only 362 of them outside of Germany. BMW didn’t have an American distributor until Max Hoffman got involved in 1955. He remained BMW’s importer until 1973.

The tiny, single-door Isetta was unofficially imported starting in 1954 and Hoffman’s business later handled distribution. He sold nearly 4000 examples of the bubble car to Americans in 1958, a surprising number considering California banned the Isetta from its freeway system because it was too slow. BMW opened its first US factory at Greer, South Carolina, in 1994; it's now the company's largest single factory, with output of around 1900 cars per day.

Land Rover (1952)

Land Rover began to challenge Jeep on its home turf in 1952. It charged $2244 (about $21,400 in 2019) for its 4x4 (pictured) that year while a Jeep CJ-3A cost just $1224 (about $11,700 in 2019). The Land Rover’s list of options included a removable hard top, a power take-off unit, a winch, and tractor-tread tires.

Most of the company’s models were sold in the US throughout the 1950s and the 1960s but exports stopped in 1974 due to the difficulty and high cost of complying with increasingly strict safety and emissions regulations. The brand didn’t return to America until it introduced a US-spec version of the original Range Rover in 1987.

Alfa Romeo (1954)

Max Hoffman began importing Alfa Romeo models from Italy in 1954. The company sold the Giulietta (pictured), which was available in three body styles, and the bigger 1900. Alfa’s annual production during the 1950s remained low and the number of cars allocated to the American market was small at best.

Alfa established headquarters in New Jersey in 1961. By that point, it had become a respected name in enthusiast circles.

Panhard (1954)

Independent distributors located in California started selling Panhard’s Dyna (pictured) and Junior models to Americans in 1954. The French company sold only 20 cars that year. Sales increased when Citroën began handling distribution but Panhard’s American division was never anywhere close to successful.

Plagued with deep-rooted problems in its home market, it left America in 1962. Its car-making arm shut down five years later.

Saab (1956)

Saab was never interested in selling its cars through a distributor like Max Hoffman. It opened an office in New York City in 1956 to handle distribution and dealer relations and it displayed the 93B (pictured) at that year’s New York Auto Show.

Visitors who wanted one had to wait; the boat carrying the first load of US-bound Saabs didn’t arrive until December 1956. About 1400 examples of the 93B were sold in 1957. General Motors acquired Saab in 2000, sold it again in 2010, and Saab went out of business in 2012.

Volvo (1956)

Volvo launched the PV444’s American career by displaying it at the 1956 New York Auto Show. Buyers could purchase one from a small but growing network of dealers or fly to Sweden and pick up their new car directly from the factory. The entry-level model came with 51 hp but motorists seeking more could pay extra for a bigger, 71 hp four-cylinder. Volvo sold about 12,000 cars in America in 1957, a figure that made it considerably more successful than rival Saab.

The PV444 (pictured) cost $2170 (about $19,500) in 1957 so it was more expensive than the 93B, which was priced at $1895 (about $17,000 in 2019). The difference wasn’t enough to tilt the scale in Saab’s favor. The 93B was less practical because it offered a three-cylinder, two-stroke engine rated at 37.5 hp. The four-cylinder engines the PV444 was available with were both four-stroke units and Americans never warmed up to the idea of mixing oil into their car's fuel.

Peugeot (1958)

Peugeot carefully studied the American market before sending the first batch of 403s across the Atlantic in 1958. Its line-up was limited to a single model, which made competing against bigger companies difficult, but the 403 (pictured) was better aligned with the tastes of American buyers than anything sold by Citroën or Renault. US-spec examples notably came standard with a sunroof.

Peugeot sold 6867 cars in 1958 and 15,787 the following year. While it was off to an admirable and promising start, it later struggled to keep its momentum and collapsed in August 1991 after a brief period of success during the 1980s.

Datsun (1958)

Nissan’s Datsun division took baby steps into the American market. It quietly displayed a handful of cars at the 1958 Imported Car Show held in Los Angeles. It managed to sell 52 examples of the four-door 1000 (pictured) in 1958; pricing started at $1799 (about $15,700 in 2019).

That was hardly an encouraging result but Datsun preserved and found 1290 buyers in 1959. Adding the Fair Lady roadster to its line-up gave its image a tremendous boost. Nissan formed its New Jersey-based American division in 1960. Nissan opened its first US factory at Smyrna, Tennessee, in 1983.

Toyota (1958)

In 1957, Toyota created a sub-division named Toyota Motor Sales in a Hollywood building once occupied by a Rambler dealership. The Crown (pictured) was sold as a Toyopet, not as a Toyota, when it began arriving on American shores in 1958. Pricing started at $1999 (about $17,400 in 2019). Toyota sold 287 examples of the Crown and a single Land Cruiser during its first year on the American market.

Clearly, the model wasn’t suited to the tastes of motorists in the US. Crown owners who regularly ate at drive-in restaurants notably complained that hanging a tray on the steering wheel sounded the horn. Toyota opened its first US factory at Georgetown, Kentucky, in 1986.

Honda (1969)

The pocket-sized, 36 hp 600 (pictured) spearheaded Honda’s American offensive in 1969. Though small and basic, it was well built and available with an optional three-speed automatic transmission named Hondamatic. Honda established its headquarters in California and began selling cars on the west coast of America. It sold 4195 cars in the US in 1970, 9509 in 1971 and 20,500 in 1972.

The Civic – one of the most fuel-efficient cars in America – arrived in time to take advantage of the shift to smaller cars triggered by the 1973 oil crisis. In 1979, a decade after the first 600 disembarked from Japan, Honda’s American division sold 353,291 cars and had started making motorcycles in Ohio. Honda then opened its first US car factory at Marysville, Ohio, in 1982.

Lamborghini (1965)

Lamborghini displayed two examples of the 350 GT at the 1965 New York Auto Show. Rhode Island-based Jake Kaplan’s Foreign Cars distributed the firm’s models but sales remained low at best. Lamborghini’s American division could have been another swing-and-a-miss story but its star began to rise after its cars – notably the Miura – got rave reviews from the public and the press.

In early 1968, there were already about a dozen examples of the Miura (pictured) in the US even though Lamborghini hadn’t obtained the model’s certification yet.

Subaru (1968)

Small and underpowered, the Subaru 360 (pictured) was ill-suited to the American market. The Japanese firm didn’t seriously consider selling it in the US but entrepreneurs Malcom Bricklin and Harvey Lamm saw its potential. They created Subaru of America in 1968 and sold franchises to dealers interested in distributing the 360. Early ads used the tagline “cheap and ugly does it” to sell the car.

Subaru sold 332 examples of the 360 in 1968 and 2407 the following year. The brand’s American adventure nearly ended when Consumer Reports called the 360 “the most unsafe car on the market” but it recovered by releasing the bigger, more powerful FF-1 in 1970. Subaru, in conjunction with Isuzu, opened its first US factory at Lafayette, Indiana, in 1989.

Audi (1970)

DKW -- one of the companies that merged to create Audi -- sold cars in America during the 1950s and the 1960s but Audi didn’t officially begin to import vehicles until 1970. It started with a two-car line-up made up of the DKW-derived Super 90 and the then-new 100 LS (pictured). Pricing started at $2995 (about $19,500 in 2019) and $3695 (about $24,000 in 2019), respectively.

These figures placed Audi in the same ballpark as other European brands like Volvo. The Super 90 was outdated but the 100 LS was a thoroughly modern family car. 1970 sales of the two models totaled 1134 and 6557 units, respectively.

Mazda (1970)

Mazda began selling cars in America in early 1970. Its dealer network initially only distributed cars in Washington and in Oregon. It sold 2098 vehicles in 1970 and nearly 20,000 in 1971. About half of the cars it shipped to America in 1971 were fitted with a rotary engine.

That figure jumped to 92% in 1973, by which point the company had crossed the 100,000 unit per year mark by expanding outside of America’s northwest. Mazda began making cars at Flat Rock, Michigan, in 1987, and the factory became a joint-venture with Ford in 1992; it reverted to Ford alone in 2012. Note: Mazda RX-2 pictured.

Mitsubishi (1982)

On paper, the tie-up between Mitsubishi and Chrysler was a match made in heaven. Mitsubishi wanted to expand its presence outside of Japan. Chrysler needed a small, reliable car to compete in the growing economy car segment. Chrysler purchased a 15% stake in Mitsubishi Motors and turned the Colt into a Dodge. Plymouth’s Arrow and Sapporo models were also made in Japan. By the late 1970s, thousands of Americans drove a Mitsubishi but many had never heard of the name.

Mitsubishi emerged from stealth mode in 1982 when it released three cars on the American market under its own name. The Cordia, Tredia (pictured) and Starion went on sale in time for the 1983 model year. It opened a factory with Chrysler in Normal, Illinois in 1985.

Hyundai (1986)

Hyundai’s American launch was a huge success. It released the Excel (pictured) in 1986 and tried to occupy the space its Japanese rivals were in during the 1970s by focusing on value and economy above all. The cheapest Excel, a two-door hatchback, cost $4995 (about $11,520 in 2019). Hyundai sold 166,882 cars in 1986, 263,610 in 1987 and 264,282 in 1988.

Marketed as “the car that makes sense,” the Excel was closely related to the Mitsubishi Mirage which was also sold in the US at the time. It single-handedly outsold the entire Mitsubishi line-up (Mirage included) by a long shot. Hyundai opened its first US factory at Montgomery, Alabama, in 2005.

Daihatsu (1988)

The American-spec Daihatsu Charade arrived in time for the 1988 model year but there was a major catch. It was only available in a handful of western and southern states. Pricing – its main selling point – started at $6397 (about $13,600 in 2019).

The Charade wasn’t as cheap as the Yugo but it remained one of the most affordable new cars on the American market. Daihatsu sold 11,460 units in 1988 and 15,118 the following year. Note: Japanese-spec Charade pictured.

Kia (1993)

The four-door Sephia (pictured) was the first Kia-badged car sold in the US. It arrived in 1993 as a 1994 model and it was priced to compete on the bottom end of America’s new car market. While American motorists had no idea what a Kia was, some had already driven one of its cars.

The original Ford Festiva released in 1987 was designed by Mazda and made by Kia in South Korea for the American and Canadian markets.

Kia wasn’t able to mimic Hyundai’s success. Its American division sold 692 cars during 1993 and it didn’t cross the 50,000-unit mark until 1998. Kia opened its first US factory at West Point, Georgia, in 2009.

Who was Max Hoffman?

As you may have gathered by now, Maximilian Hoffman was a rather important component in this story. Indeed, many European automakers wouldn't have been able to crack the American market without the help of this business-savvy racer, enthusiast and entrepreneur. Born in 1904, he started racing and selling cars in his native Austria. However, with a partly Jewish background he was forced to flee the Nazis at the end of the 1930s, re-locating first to Paris, and then to New York City (in 1941).

Hoffman returned to the automotive industry when he founded the Hoffman Motor Company in 1947, and quickly inked a deal to distribute Jaguar models in the eastern part of the US. He also helped launch Volkswagen, Mercedes-Benz, Porsche, Alfa Romeo, Jensen, BMW, MG and Fiat. These firms were well aware of the American market's immense potential and they listened attentively to Hoffman's suggestions. When he sensed a demand for a powerful roadster, BMW used his feedback to create the 507. He convinced Mercedes-Benz to release the 300 SL by placing an order for 1000 cars before development work even started.

Companies often later bought Hoffman out to take distribution into their own hands as they outgrew his business. He focused on BMW during the 1960s. He notably played a significant role in persuading BMW management in Munich to make the 2002 by stuffing a bigger engine in the 1602. Hoffman died in 1981 and was inducted into the Automotive Hall of Fame in 2003. A foundation was formed in his and his wife's name, originally fuelled with the considerable wealth his various businesses earned him; in 2013, the foundation had assets of US$60 million.