France’s PSA Peugeot Citroen, the second largest European automaker, announced recently its third quarter revenue soared slightly – by 3.2 percent – thanks to the European market upturn that mitigated negative effects stemming from emerging markets’ performance.
According to the Paris-based group, revenue increased to 12.4 billion euros ($13.7 billion) during the past three months, while auto sales actually decreased worldwide by 4.3 percent and by a whopping 17 percent in Asia, where the Chinese market, the largest in the world, has been slowing. “The important thing is that our solid growth is driven by key elements of our sales and product strategy,” commented Chief Financial Officer Jean-Baptiste de Chatillon, adding that net pricing has increased by 1.2 percent during the period. PSA’s main automotive division also registered a positive figure for the revenue, up one percent to 8.05 billion euros.
Chief executive officer Carlos Tavares has proposed an ambitious recovery strategy that includes shedding the automaker’s high dependence on Europe for at least 60 percent of deliveries. But the bond actually helped the company during the past quarter, as automotive sales in its core region increased 6.1 percent. Meanwhile, just like the rest of its automotive competitors, PSA is also coping with the huge collapses in certain prospective markets such as South America – mainly Brazil – and Russia. The automaker in the future will also need to adapt in Europe to the shifting perspective triggered by the VW scandal, which has placed diesel technology in hostile territory by the regulators and authorities – including at home in France, which had been one of the strongholds for diesel sales.