25th July 2012

PSA Peugeot Citroen Deep In The Reds

posted in Car News Articles |

Europe’s second-largest car maker and GM alliance partner PSA Peugeot Citroen ended the first half of the year with its auto division 662 million euro ($800 million) in the reds, Reuters says.  

This loss did not come unexpected. Global sales were down 13 percent in the first half year, Iran-heavy CKD sales were down a whopping 31 percent.  PSA tried to stem additional bloodletting by announcing 8,000 French job cuts and a plant closure. That brought the company in the cross hairs of the newly elected leftist government.

PSA wants a 10 percent reduction of the French workforce. Peugeot says that would generate 1.5 billion euros in savings by 2015. €350 million are supposed to be saved through the cooperation with alliance partner GM.

Cross-town rival Renault expects European car sales not to return to pre-crisis levels before 2017.

Read more

This entry was posted on Wednesday, July 25th, 2012 at 1:07 pm and is filed under Car News Articles. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.