Peugeot 205
When French giant Peugeot took over Citroen in 1975, forming the PSA Group and the European division of Chrysler in 1978, it initially seemed like a good idea. But it soon put the company into financial trouble. One part of the solution was the French state which granted a considerable sum of money. They also set forth a series of import restrictions for Japanese cars, while the other was of an engineering nature. In 1983, Peugeot launched the 205 supermini. It was a high-quality, spacious, and charming three-door or five-door compact. As one of the best market offerings in the class, the 205 soon conquered Europe, reimagining the Peugeot brand in just a few years (via Media Stellantis).
Once conservative, the Peugeot became youthful and hip almost overnight. Numerous special edition versions of the 205 helped nurture the newly acquired image. In the years before the 205, Peugeot had some rally experience. And luckily for the company, its great financial situation coincided with the Group B years in rallying. Peugeot was able to develop the 205 T16, an iconic Group B car that made people love the ordinary 205 even more. Thanks to the 205, Peugeot gained massive profits. But more importantly, it established itself as the maker of high-quality compact cars, which is by far the most lucrative market segment in Europe.