The 204: the first car with four independent wheels.

1965 In April, in an unprecedented move, Peugeot introduces the 204, its first front-wheel drive vehicle. It has a light alloy engine with overhead camshaft, four independent wheels and disc brakes on the front wheels. On 14 June, a special single-seater diesel 404 coupé beats 40 world records on the Montlhéry ring. Launch of the ZF automatic gearbox on the 404. The old société des automobiles Peugeot becomes a holding company, operating under the name of Peugeot S.A. and controlling all the companies in the group. The industrial and commercial assets of société des automobiles Peugeot and société Indénor (which builds diesel engines in Lille) are brought together to form Société des automobiles Peugeot, which is responsible for managing the production and sale of the automobiles built in factories in Sochaux-Montbéliard, Bart, Mulhouse, Dijon, Lille, Saint-Étienne, Vesoul and La Garenne.

1966 In April, Peugeot signs a technical cooperation agreement with Renault to develop joint projects. A subsidiary entitled la Française de mécanique is set up to build engines for the two partners. A factory will be constructed in Douvrin near Lille, with engine production starting there in 1972, after the Swedish carmaker, Volvo, joins the two French manufacturers. Peugeot et Cie becomes Aciers et outillages Peugeot.

1967 At the Paris Motor Show in October, Peugeot introduces the smallest diesel engine in the world, a 1200 cc model fitted to the 204 estate.

The record-breaking 404 diesel.

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