PSA Peugeot Citroen Deep In The Reds

Bertel Schmitt
by Bertel Schmitt
psa peugeot citroen deep in the reds

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.

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  • TheOtherLew TheOtherLew on Jul 25, 2012

    That damn Euro-English, making everything plural. A single red is sufficient for our good ol' fashioned American losers. (As for the European trade unions, that's another story ...)

  • Polar Bear Polar Bear on Jul 25, 2012

    PSA can learn a lot from GM. Such as how to sell millions of cars and still go bankrupt.