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The French Connection: Peugeot 405

Updated: Feb 4, 2023



The end of the 80s marked a time when European cars of the German-kind were starting to overrun the French, troubling French makers with their Golf GTIs, 5-series, and 300Es. To add insult to injury, Peugeot's parent PSA group were having major troubles with their shares. It all started in 1975, when then-Peugeot PSA president Jean-Paul Parayre wanted to transform Peugeot into a top contender in the European market leagues by acquiring two companies in a simultaneous fashion: Citroen from Michelin and Chrysler Europe. However, despite many experts claiming that the decision was paramount, the timing could not have been much worse. Soon after the second oil shock crisis in 1979, Parayre's ambitious dreams were put to a screeching halt, with their market shares dropping down as much as 6% from 17.9% to only 11.1%, or when translated, uncontrollably large sums of debt.


Raising Talbot proved to be another challenge on its own, as not only do they have to deal with their own unnecessary product lineups, but also as their line of Talbot cars having rocky starts in sales. In 1981, production and sales of their Talbot Samba were spiraling down to an uncontrollable mess, and by 1983 it had slumped so bad that Peugeot had lost $300,000,000 in profit, resulting in a massive 7,371 worker cut off, a good 9% of the total Peugeot workforce at the time. Peugeot's situation had gotten so dire to the point where many analysts bravely concluded its bankruptcy. Enter Jacques Calvet, ex-vice chairman of Peugeot by 1983 and president of the PSA group from 1984 to 1997. Mr. Calvet seeks to repair the almost irreparable damage that had been caused by a previous streak of poor and unlucky decisions. That meant lesser models, and lesser workforce; a good 58,000 out of the remaining 218,000 that is. It created a slash among the union workers of France and Mr. Calvet himself, but all was necessary as he needed to get rid of excess weight, a prime contributor to Peugeot's absolute screw-up.

The 205. Peugeot's savior from imminent bankruptcy. Source: Autofun

Trendier cars that better understood the lifestyle of the masses became Calvet's focus during his time in Peugeot. Hence, in 1983, Peugeot released their 205 hatchback, a small B-segment supermini which proved to be a ground-breaking success, competing with the likes of the well-acclaimed German Golf GTI. This in turn helped Peugeot to narrowly escape from the deepest gates of bankruptcy hell. Its outstanding success also saw a bright future for Peugeot, as their cars are being taken into a completely new direction. By 1987, Peugeot's long-running 505 was starting to become obsolete, what with its production starting as early as the late 70s. It was time for a change, and Mr. Calvet had just the right car in mind to do exactly that. The craze of mid-size sedans in Europe during the mid to late 80s brought an opportunity to Peugeot by cashing in on the latest trends. Enter the 405, Peugeot's answer to the mid-size sedan competition of the late 1980s, as well as their longed successor to the rickety 505, which funnily enough did not stop production 5 years after the release of its successor.


Released in July of 1987, the 405 brought about the 205's award-winning features and implement it into a bigger, bulkier package. Renowned Italian vehicle designer Pininfarina was assigned with the sketch of the 405. With cues taken from the smash hit 205, Peugeot's new sedan featured similar front end styling to their beloved hatchback, adopting the same horizontal three-slat grille and boxy headlights. as well as a chiseled-yet-low profile body that had been softened around the edges. Many proclaimed that the 405 looked extremely similar to the Alfa Romeo 164, another mid-size sedan also designed by the popular Italian designer. Had it not been for the different front fascias, many say that they could not differentiate the two apart. However, design similarities and Italian origins aside, it was clear that the Peugeot looked quintessentially French. The low-slung body design helped the car to achieve a maximum drag coefficient of 0.29, an industry feat for its time, as only very few cars could manage such a low coefficient. Despite this, sources claim that the coefficients vary between the trim models, with the 0.29 value only present in the base models, and a higher 0.30 to even 0.33 value being found in the higher end models.

Despite being a "base" model, the SRi was one of the most complete Peugeot 405s to option. Source: Peugeot Official Photos

Trim models and engine options were aplenty, from company workhorses to Seine missiles. The GL (or the Sillage by 1994), being the most basic of all the trims, was equipped with either a 1.4 L TU3 8-valve carbureted SOHC inline-4 or a 1.6 L XU5 8-valve SOHC inline-4, both producing 70 PS at 5600 RPM and 92 PS at 6000 RPM respectively, connected to either a 4-speed manual for the 1.4 unit, or a 5-speed manual for the 1.6 unit. The next trim, called the SR (or Signature by 1994), retained both TU3 and XU5 options, but was given more options by having a more powerful 1.8 L XU7 8-valve SOHC inline-4 (110 PS, carburetor) or with even bigger engines such as the 1.9 L XU9 8-valve SOHC inline-4 (110 PS w/ carburetors, 125 PS w/ EFI) and the 2.0 L XU10 8-valve SOHC inline-4 (121 PS, EFI). Customers wanting a torquier engine could also opt for their diesel engines, with either a 1.8 L XUD7 inline-4 diesel turbo (90 PS) or a 1.9 L XUD9 inline-4 diesel, also turbocharged (92 PS). Transmission options were also similar to the GL, but this time with a 4-speed automatic luxury option to go with the SR. Other models such as the GR, GRX, GLX, and ST all shared the same engine and transmission options, albeit with some models being offered with turbo variants of similar engines. The final two trims, the Mi16 and T16, were the top-of-the-pack performance models, with the Mi16 being the "GTI" equivalent of 405 sedans, front-wheel-drive, and powered by a twin-cam variant of the 1.9 L XU9 engine, producing 160PS at 6500 RPM and 176 N-m of torque at 5000 RPM, all transferred to a 5-speed manual, which became the only option.



Interior shots and options for the T16, Mi16, and STi trims respectively. Source: Peugeot Official Brochures and Photos

Peugeot's 405 T16 still remains to be the crown jewel of their beloved 80s mid-size sedan. The highest trim of all the 405s, only 1,046 units of the T16 were made, making it also one of the most sough-after 405s. Four-wheel-driven, and powered by a Garrett VAT 25 turbocharged, twin-cam version of their 2.0 L XU10 inline-4, this unassuming French rocket produced 220 PS at 6500 RPM and 324 N-m of torque at 3500 RPM, enabling the car to propel from 0-100 km/h in just about 7 seconds, impressive considering that it's a mid-size sedan meant for middle-to-high class families. Of course, being the highest trim option available, the T16 was shod with numerous interior features, including, but not limited to: central locking, heated leather/fabric combination semi-bucket seats with adjustable lumbar support, electric windows all round, digital tachometer, digital clock, interior temperature regulator and hot/cold air conditioning settings, two-speed variable intermittent wipers, adjustable and heated power side mirrors, three-spoke sports steering wheel, front side window defroster. The list goes on, but what makes the 405 truly special is that some of these features can already be had in the most basic models. Even if the base models were seen as basic transportation, fabric seats as standard would make sure that your trip around would have been a comfortable one. No two cars felt dull and boring, and even if they were, they still had a premium feel to them regardless.


For the most part, almost all 405s were either front wheel drive or four-wheel-drive, depending on choice. However, in terms of suspension, it was a little more complicated. Most 405s used independent front MacPherson struts and rear torsion beams, with many critics praising the front-wheel-drive 405s for its sharp handling, which rivaled that of German makes. However, the 4x4 variant of 405s were a little different in comparison. Since the car shared the same platform as Citroen's funky BX, it was natural that they also shared Citroen's ingenious hydro-pneumatic suspension. Thus, 4x4 405s such as the Mi16 4x4 and of course the T16 were given rear hydro-pneumatic suspension systems in replacement for the torsion beams found in FF models. This was coupled with a viscous-coupling center differential and a Torsen rear-differential to complete its 4WD package. Now, the hydro-pneumatic suspension isn't exactly what you call a "run-of-the-mill spring and damper setup". No. Instead, it was a self leveling suspension system which replaces conventional vehicle shock absorbers and springs for spheres. These spheres, which contain trapped gas, are connected to a reservoir containing hydraulic fluid. Under cornering, the control arms push the hydraulic fluid out of the reservoir, and this in turn compresses the trapped gas in order to level out the suspension system, which keeps the vehicle’s suspension in a steady and level posture, hence improving cornering performance.

A snippet of the 1995 Peugeot 405 brochure, showcasing its 4WD system and hydro-pneumatic suspension on the 405 T16. Source: Peugeot Official Brochures

The sheer performance potential of the 405 made Peugeot keen on entering into motorsport, and so they did. The Mi16 models took care of their home-based Coupe de France de Supertourisme touring car races, which can be compared to the likes of British BTCC, Italian Super Turismo, and Japan's JTCC. Stripped out of all its creature comforts whilst kitted with the latest of touring car aeros at the time, the 405 Supertourisme (or STW to some fans) weighed in at just under 1000 kgs, 945 to be exact. A good 140 kilograms lighter than the road-going FF Mi16. This coupled with an OBIS-prepared 2.0 L DOHC 16-valve inline-4 (possibly a variant of the 306 Maxi's engine) that produced 290 PS at a screaming 8900 RPMs, made for a very dominant car on the track. How dominant? You may ask. Well, it outright won the championship in 1994, before snatching another win in 1995 by the same driver, Laurent Aïello. In 1996, the car got phased out as it was no longer deemed competitive. Meanwhile, Peugeot were also thinking of other ways to re-use their now unusable mid-engined Group S 405 Turbo 16 coupe prototype.With the success of their 205 Turbo 16s in both Group B and in Paris-Dakar rally raid form, it wasn't long before they hatched a similar idea to the 405. Using the same body, it's now mounted under a full-tubular space frame chassis, and the 1.9 L XU9T turbo-inline 4 were given massive upgrades such as variable valve timing and variable geometry Garrett T31 turbochargers to produce 400PS at 7500 RPM and 490 N-m at 4000 RPM, some saying that it could go well over 600PS if it weren't for poor quality African fuels.


405 Supertourisme and Grand Raid cars. Both equally exceptional race cars on their respective terrains. Source: delessencedansmesveines.com, Group B Shrine

Under the leadership of Jean Todt of the Peugeot Talbot Sport team, two 405 Turbo 16 Grand Raids were put to the pace as early as 1988, along with two 205 Turbo 16 Rally Raids for Paris-Dakar. However, it was a rocky start for the team at first, as Ari Vatanen's 405 was subsequently hijacked and hold for ransom in Bamako, while the second 405 driven by Henri Pescarolo only managed 18th place overall, losing to Juha Kankkunen in the older 205 Turbo 16 rally raid. '89 and '90 saw a different outcome for the 405s however, as Vatanen and Bruno Berglund won both outings of the Paris-Dakar back to back, cementing Peugeot Talbot Sport as one of the most successful teams to compete in the Paris-Dakar championship, winning 4 consecutive championships before retiring shortly after to focus on their 905 Le Mans efforts. The failure of its 1988 Paris-Dakar outing birthed another version of the rally raid car that arguably became one of the most recognized Peugeots in history, the 405 T16 Pikes Peak, solely made to do one specific task very well; go up the infamous mountain pass as fast as humanly possible. Using the same base as the 405 rally raid coupes, the Pikes Peak car was lowered and given a high downforce kit to cope with its now de-restricted XU9T engine, the same one from the rally raid car, but now producing 650PS at 7500 RPM with a torque figure of 700 N-m at 4500 RPM, although Vatanen himself claimed that the car was well above 800PS during its run.

Henri, Ari, and Juha returned to become drivers for the 1988 season of Pikes Peak, with Vatanen being lead driver. His run would later on smash the record of Walter Röhrl's Audi Quattro S1 Pikes Peak in 1987 by six hundredths of a second (Ari Vatanen: 10:47.220, Walter Röhrl: 10:47.850). It wouldn't be until for another six years until the record was beaten by Rod Millen and his Toyota Celica Turbo. In 1989, Peugeot Talbot Sport re-entered the car into Pikes Peak, now driven by Vatanen and Robby Unser. Both drivers did not manage to best their 1988 record. However, they still won the event regardless. One of the most remembered memorabilia of the 1988 run was the award-winning "Climb Dance" movie (see video above), a short film directed by Jean Louis Mourey that captured the thrill and tension of Vatanen's record breaking run with the Pikes Peak 405, all shot live during his exact uphill climb, and in which one of the scenes, showing Vatanen using his arms as a sun visor to block out sun rays mid-race, became an iconic moment of the short. Peugeot's immense success with the 405 in motorsport followed along with its equally successful commercial sales eventually led to its nomination for the "European Car of the Year" award in 1988, selling a total of 4,626,700 units worldwide.


That number was also accounted for the "new" 405s. Years after its discontinuation, many countries still produce and sell 405s as late as 2020, with Iranian Peugeot-affiliated IKCO being possibly the last car manufacturer to still be producing this late 80s mid-size sedan, complete with Peugeot-built engines and specific parts that are supplied directly by Peugeot themselves (their production does not include Mi16 and T16 cars unfortunately). However, the same success story cannot be said in America. When the 405 was released, Peugeot had to make extensive changes to the car in order to comply with American safety regulation standards, this in turn added 140 kgs to the base car, and with the USDM Mi16 de-tuned in power to only 150 PS, things weren't looking out so great. With Peugeot not being sure of their future endeavors with Uncle Sam, despite the many praises of the 405, and with the Americans still in disbelief by the arrival of the industry-changing Lexus LS400, Peugeot doesn't seem to see a good future of their company in America, and hence, the 405 became the last Peugeot to be sold stateside. By December 1st, 1991, it was decided that Peugeot would pull out of the American markets for good, following fellow Frenchman Citroen's departure during the oil crisis of the 70s.

The American advertisement for the Peugeot 405. Source: Peugeot American Official Brochures

Despite the sad ending of Peugeot in America, the 405 was still a smashing success worldwide, and it further saved Peugeot from its near death experience almost 5 years prior. In 1996, the car was finally laid to rest, and in its replacement was the new 406; sleeker and much more fluid in design. Although not winning any awards, the 406 almost manage to cop itself the 1996 European Car of the Year award, losing by only 15 points to the Italian Fiat Bravo. It also became a cult icon, starring in the hit automotive comedy film series "Taxi" featuring Samy Naceri as Daniel Morales, a skilled French Taxi Marseille driver who uses a Peugeot 406 capable of converting itself into a Super Tourisme touring car by a flick of a switch. Films aside, the impact of the 405 can still be felt even after its successors came along and replaced it, what with the current re-manufacturing under Iranian hands, so much so in fact that it placed 12th in the "Top 30 Global D-Segment Sales List" of Car Industry Analysis in 2020, calling it an amazing feat would have been a monumental understatement, considering that is has been 25 years since it was last produced officially, and also knowing that its main competitors were brand new Corolla and Civic sedans by Toyota and Honda. To this day, the success of the 405 is undeniable, and even if it has fallen into obscurity to many modern day car enthusiasts, it remains to be one of most influential French cars ever released.


Just be aware of electrical issues, and fanbelts. Oh yes. Especially the fanbelts.


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