PSA Peugeot-Citroen, Europe’s second-largest carmaker by volume after Volkswagen Ag said new car sales in Europe will continue to fall this year – by 5 percent.
On the same time, the French company is predicting sales growth of 10 percent in China, where it is increasing the number of production plants to four. The company also recently entered an alliance with the US’s General Motors, which it said was already beginning to reap benefits.
The French company’s auto sales in Western Europe tumbled 14% in the first six months of 2013, compared with a year earlier, according to the European Automobile Manufacturers’ Association.
Earlier today PSA Peugeot Citroen reported that it had lost 426 million euros ($564 million) in the first six month of 2013. Bad new somehow but the company was able to narrow its deficit to about half the 819 million euros it lost during the same period a year earlier.
PSA accounts for 60 per cent of France’s car production and employs close to 100,000 people in the country. Although the state does not own an equity stake in the carmaker, it is seen as a company that the government would never allow to collapse.
Peugeot’s net debt rose to 3.32 billion euros at June 30 from 3.15 billion six months earlier.