With the news that Peugeot was replacing two of its models - the 607 and the 407 - with one car, the new Peugeot 508, it was an indication that things had changed in France. As Automotive News reports, all of sudden, we understood that French car manufacturers had given up the fight to compete with Germany’s big guns in the large, luxury sedan segment.

The announcement of the Peugeot 508 has come among other news of French sedans. Renault canned its embarrassing Vel Satis model and is focusing on its new Renault Latitude. So far, it’s a nice looking car but not only is it not a big luxury sedan, it’s also destined first for Russia and other emerging markets before making its way back home to Europe.

The Citroen C6 is also on its way out with no replacement planned. As Automotive News’ Luca Ciferri says:

French carmakers have finally given up their delusions of grandeur – the belief that they can compete with their German rivals in Europe’s large car segment…. The two French car companies battled on with their grand dream of ending the dominance of the German premium carmakers. Unfortunately, vanity is not a valid business advisor.

While Mercedes, BMW and Audi clearly have the monopoly on the large car segment, it’s making things a little crowded in other areas. With every car manufacturer on the continent having compact cars, hatchbacks and small sedans, with a few SUVs and MPVs thrown in, consumers are really spoiled for choice. Which is why the French can probably still count on patriotism contributing to purchases of its other models as the difference between a Citroen C3, say, and a Lancia Ypsilon or Volkswagen Polo, is that it’s French.

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