Participation in the auto-business required investment on a scale that would commit the company to a major change of direction, away from products with which it had a proven track record.
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.
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.
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.