1 January – Peugeot completes its takeover of Chrysler Europe, which includes the Simca factories in France and the former Rootes Group factories in Britain. The deal was agreed eight months ago. It is unclear whether the Chrysler brand on British market models will be replaced by Simca branding, or whether a new or different brand within the combine will replace it.
8 January – French tanker Betelgeuse explodes at the Gulf Oil terminal at Bantry in Ireland; 50 are killed.
May – Launch of the Peugeot 505, a large rear-wheel drive family saloon which will eventually replace the 504.
9 July – A car bomb destroys a Renault owned by "Nazi hunters" Serge and Beate Klarsfeld at their home in France. A note purportedly from ODESSA claims responsibility.
1 August – End of the Simca marque after 45 years; from now on, all former Simca and Chrysler cars will be sold as Talbots, following the takeover of Chrysler Europe by Peugeot last year.[3]