High equipment levels, a luxurious interior, a smooth ride, and exceptional handling were strong points for the 605. But Peugeot has always struggled to succeed with large cars outside France, and the 605 was no different. It was too similar in design and appearance to the smaller Peugeot 405 to command a price premium, while its dashboard also drew criticism for its uninspired design.
Also like the XM, 605 suffered from grave build quality issues that resulted in a large number of breakdowns or malfunctions (particularly with the ambitious electrics), which severely damaged the car's reputation. It took Peugeot three years to improve these disappointing levels of quality.
PSA Peugeot Citroën has not been able to address the "luxury-brand" issue effectively - the automobile market rewards such segmentation, by brands from one factory - like Lexus/Toyota, Acura/Honda, and Audi/Volkswagen. Consumers demand a certain exclusivity from luxury cars that commodity producers cannot provide.