PSA Peugeot Citroen is confident that it can boost sales during the second half of the year, relying on the new models.
“This will be a challenge, but we can do it with the new models ahead of us, ” said Peugeot boss, Maxime Picat.
Although Peugeot’s revenue dropped 6.5% during the first quarter compared with the same period last year, it was still higher than analysts’ estimations of 12.7 billion euro. Deliveries also fell 2.5% to 674,200 vehicles and the automaker expects sales by the end of this year to drop 5% in Europe. Peugeot plans to cut cash consumption to 100 million euro in 2013 and hit the break-even level by the end of 2014.
“We continue to remain skeptical about PSA achieving this, but confirmation should provide some comfort,” Philip Watkins, a London-based analyst at Citigroup Inc., said today in a report to investors.
In February, Peugeot Citroen CEO Philippe Varin said that the automaker is on its way to return to profit thanks to spending cuts, Peugeot’s upscale shift and the partnership with GM. Peugeot relies on the new models, such as the 208 small car, the 2008 SUV and the 308, to boost sales.
According to an AFP report released last week, Dongfeng, the second largest automaker in China, plans to buy a large stake in the struggling French automaker. An anonymous source said that discussions started some time ago, but that the progress is slow and there’s no certainty that a deal will be reached.