I have answered this same question twice before, and will post my answer again for you.
Best Answer - Chosen by Asker
In the early 1990's, yes, Peugeot cars did not pass crash tests and emmission standards of the USA.
But, since then, the emmission standards and crash tests of Europe have equalled or exceeded those of the USA. Other differences include: color of turn signal plastic (yellow or red) construction of safety glass (break and fall into pieces = USA, or break and stay in place = Europe).
(my European cars must be tested every year for pollution standards. Do they have yearly controls of this in the USA? My state, Ohio, stopped it 2 years ago.)
Now, fast forward to 2007. Peugeot is going strong in Europe, Asia, Mexico, and even IRAN (where the Iranians still make the discontinued 405 model. 500 cars caught on fire last year in Teheran).
Peugeot has invested millions of Euros in car factories in Spain. Next year CHINA will make the 5 door Peugeot 206. Other large auto companies in Asia are also licenced to make their version of the Peugeot 206. I think?? even in India.
Meanwhile, the French factories and English factories are making the 207.
CHINA is the new market for international car companies.
NOT the USA, sorry. (I am American, too). Even Buicks sell well in China.
Meeting Pollution and Safety standards are not Peugeot's problems in 2007.
But DIESEL CARS and Diesel engines are certainly 50 percent of Peugeot's business. How many Americans want a diesel car? Diesel fuel is 30 percent cheaper than gasoline in Europe/ Asia/ Africa. Diesel cars cost more, but the engines last longer, and the fuel is more economical everywhere EXCEPT in the USA.
There is just NO REASON AT ALL to overextend themselves and try to also compete in America.
Conversely, Chevrolet is trying to establish itself here in Belgium. I receive brochures in the mail, and I see some Chevys now and then.