What a sexy bride! A year ago, GM acquired seven percent in moribund PSA. A year later, PSA announces truly horrific results. PSA’s global car sales dropped 16.5 percent for the year. Its market share in Europe is down 0.5 points to 12.7 percent. There is a big black hole where there used to be a profitable Iran business.
The European car market is at its lowest in close to two decades and Peugeot’s sales performance in the region in 2012 was the worst in at least the same period, Reuters says. PSA thinks that the EU market might drop another 3-5 percent this year.
“If this view of the world should turn out correct, we see little reason why the financial situation at PSA should improve at all during the year,” Credit Suisse analyst told Reuters.
The mesalliance with GM brought PSA more trouble than benefits: After the linkup with GM was announced, PSA found itself in the cross-hairs of an influential US anti-Iran lobby group which pressured GM to make Peugeot shut down Peugeot’s Iran business due to Tehran’s suspect nuclear program. PSA abandoned Iran faster than intended, at the cost of 313,000 CKD kits and untold amounts of parts no longer shipped to Iran. More