In the business press on both sides of the Atlantic, people readily speak of the “contract of the century”. A very exaggerated qualifier, which concerns, after all, only 1200 cars.
A significant figure for Peugeot USA, but a tiny drop of water for the American market. The lion team is certain of it. By obtaining the NYC taxi contract, the Peugeot 505 Diesel will benefit from extraordinary exposure throughout the country. It must be said that the new New York taxi has serious advantages.
Peugeot 505, the ideal taxi?
After a few months, the operation is a success. The taxi-approved Peugeot 505 won over 850 New York drivers. In the New York Times, the head of the taxi union, Anthony J. Aldarelli predicts that French diesel will represent by the end of 1981 more than 1,200 cars, or 10% of the 12,000 taxis serving New York.
The first advantage lies in its consumption. Able to travel 26 miles per gallon in the city, the Peugeot is much more economical to use than its Ford or Chevrolet competitors, which only exceed 15 miles per gallon. To make it clearer, we are talking here about a consumption of nine liters of diesel for the French car, against fifteen liters for the large American sedans.
The Peugeot Diesel invades New York
For Jay L.Turoff, chairman of the New York City Taxi and Limousine Commission, “Using a Peugeot taxi saves up to 40% of the fuel budget all year round”.
In the streets of the city, we see the multiplication of Peugeot 505s. As incredible as it may seem, the French car is replacing the American references, on their own ground.
In an America still traumatized by the oil crisis, Diesel has found its place. But the fall will be terrible.
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The dream ends
The success is there, but the Peugeot does not only have qualities. Many drivers criticize its price. At $13,000, the 505 Diesel Taxi is $5,000 more than its American Chevrolet counterpart.
It takes more than a year to hope to make the business profitable, after having driven 100,000 km. But for that, the car would have to be able to do them.
From the first breakdowns, a rumor spread among New York drivers. The Peugeot network would be unable to repair cars quickly, and spare parts would be horribly expensive.
A bad deal?
Anthony Benelo, former Big Apple taxi driver tells us: “I was an owner-driver in NYC. It was therefore I who had to buy and maintain my vehicle. So I rented this French car which promised great savings in use. I got rid of it after less than a year. Repairs were way too expensive. Often parts were not available. You had to order them, wait. During this time you are not working. And you see your colleagues in Chevrolets or Fords driving”.
Way too small for the average American
The former driver points to another major problem. “Each time I took on a client, I always heard the same remark. “Your taxi is too small!” The Peugeot 505, studied for Europe and considered here as a large sedan, was simply too small for the average American.
“I could only carry two passengers in the back. A real shortfall. When the New Yorker saw a taxi coming, he lowered his hand when it was a Peugeot!”
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The Peugeot 505 resists everything, except New York
The biggest problem, however, will be elsewhere. An American taxi travels an average of 100,000 km per year, in difficult conditions.
The streets of New York in the 80s are absolutely rutted and very demanding on the mechanics and the chassis. In the New York Times, Jules Levine, Chevrolet dealer, launches into a diatribe against Peugeot taxis.
“The Peugeot is simply not suited to withstand city streets. The Chevrolet is not a tank, but it is specially designed for this city. Anthony, our former taxi driver agrees: “The 505 just wasn’t up to snuff. All parts seemed undersized. After a few tens of thousands of kilometres, the potholes of New York had got the better of the American career of the Peugeots”.
Legislation completes taxi 505
Quickly, sales to taxis plummeted. The 505 will never become the mythical taxi of the city like the Checker or Crown Victoria. Meanwhile, American manufacturers have succeeded in their lobbying.
In 1983, anti-pollution legislation tightened, prohibiting the sale of diesel vehicles. Peugeot is trying to sell petrol 505s, but it’s too late.
The yellow Chevrolet Caprice or Dodge Aspen invade the streets again. No one wants to buy Peugeot anymore. After a few years of survival, Peugeot left the American market in 1991.
Announced a few years ago, the possible return was canceled following the creation of Stellantis. We are not ready to see Peugeots again in New York.
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