GM got itself a great new partner. Global sales of PSA Peugeot Citroen, the besieged company that is now 7 percent owned by the General, dropped 13 percent, Reuters says. PSA’s European sales dropped 15 percent, which illustrates how much PSA’s ill fortunes are tied to those of Europe.
“The Group remains adversely impacted by an unfavorable market mix, with the most promising markets for the Peugeot and Citroën brands (France, Spain and Italy) all suffering from deep recession,” PSA says in a statement. Those markets promise more blood and tears for the next few years.
Sales of CKD (complete knocked down) units are knocked down by 31 percent to 143,000, and you probably know why. Says PSA:
“The increased sanctions against Iran made it impossible to finance Iran-bound sales of CKD units, which led the Group to suspend these sales during the first half, in compliance with international regulations.”
No word of parts sales to Iran. They can be more profitable than a few CKD units.
Tow thirds of PSA’s sales are in Europe. In its second-largest market, Latin America, PSA lost more than 20 percent in the first six months of 2012. PSA is an also-run in the growth markets of China and Russia. It sold an additional 20,000 units in these markets from January through June, a drop in the badly leaking bucket.