The Peugeot family of Valentigney, Montbéliard, Franche-Comté, France, began in the manufacturing business in the 18th century. In 1842, they added production of coffee, pepper, and salt grinders.
The company's entry into the vehicle market was by means of crinoline dresses, which used steel rods, leading to umbrella frames, saw blades, wire wheels, and ultimately bicycles.
Armand Peugeot introduced his "Le Grand Bi" penny-farthing in 1882, along with a range of other bicycles. Peugeot bicycles continued to be built until very recently, although the car company and bike company parted ways in 1926.
Armand Peugeot became interested in the automobile early on and, after meeting with Gottlieb Daimler and others, was convinced of its viability. The first Peugeot automobile, a three-wheeled steam-powered car designed by Léon Serpollet, was produced in 1889; only four examples were made. Steam power was heavy and bulky and required lengthy warmup times. In 1890, after meeting Gottlieb Daimler and Émile Levassor, steam was abandoned in favour of a four-wheeled car with a petrol-fuelled internal combustion engine built by Panhard under Daimler licence. The car was more sophisticated than many of its contemporaries, with a three-point suspension and a sliding-gear transmission.
