1906 Lion-Peugeot VC
By 1905 control over the residual Peugeot business had passed to the three sons of Eugène, Robert Peugeot (1873 – 1945), Pierre Peugeot (1871 – 1927) and Jules Peugeot (1882 – 1957). Relations between the new Peugeot generation and their cousin Armand, whose “Automobiles Peugeot” business was enjoying great success, became less confrontational with Eugène no longer so active in the business. An agreement was entered into to regularise relations between the two companies. The company previously controlled by Eugène agreed to pay a million francs annually to Armand Peugeot, and in return Armand agreed to the company manufacturing cars independently of his own “Automobiles Peugeot” business. These cars started to be sold in 1906, badged as "Lion-Peugeots": the first of them was the Lion-Peugeot Type VA.
During the ensuing decade Lion-Peugeot automobiles were produced and sold in reasonable quantities with several models breaking through the 1,000 units threshold. While the Peugeot Bébé, launched in 1904 by "Peugeot-Automobiles" before the reconciliation, continued its own successful career, new model investment by the "Peugeot-Automobiles" now concentrated on mid-range and larger cars, leaving the "Lion-Peugeot" business to build a Peugeot presence in the small car sector. This pattern was sustained during the remaining years of peace after the two businesses merged in 1910, until the termination of the "Lion-Peugeot" brand in 1916, by which time war-time economic conditions had for the time being effectively put an end to passenger car manufacturing in France.
Robert Peugeot and his brothers evidently felt none of their father's hostility to Armand, and it seems to have been the death of Eugène in 1907 that opened the way for the reunification of the two Peugeot automobile businesses. Armand's own only son had died in 1896, and his lack of a direct male heir may have encouraged him to respond positively to his junior kinsmens' promptings. The merger of the two businesses took place formally in 1910, although in terms of the way the model ranges came together, the merger took place progressively over several years. In 1916, demand for passenger cars having collapsed, the plant that had produced the Lion-Peugeots was closed, and after the war small models again became fully integrated into the Peugeot range. However, the first decade after the war saw France greatly impoverished, and it would be some years before automobile production would again become a profitable activity for Peugeot which had, prudently as matters turned out, retained a solid presence in the bicycle business.
The VC model, presented in 1906, was equipped with a 1-cylinder 1,045 cm3 engine rated at 8-9 hp. The museum car won the championship of Catalonia in 1908 and 1909.