Maxim Picat, the head of Peugeot, said that the automaker is expected to turn to profit again in 2015.
“We’ll have a positive cash flow at the end of 2014, in the following year we’ll have a profit again,” Mr. Picat is quoted as saying.
As Peugeot continues to see its sales fall in western Europe, it has agreed to receive the French government’s help to get the company back on the track. Peugeot agreed to withhold dividend payouts and postpone share buybacks and performance bonuses to top executives. Mr. Picat also said that Peugeot will continue its alliance with GM and its Opel brand, which aims at saving 2 billion euro ($2.6 billion) within five years.
“Our cooperation is going as planned,” he says. “As we said, we will build cars together using four shared platforms.”
Last month Reuters reported that the GM-Peugeot alliance was in danger due to Peugeot’s worsening finances and also the fact that the automaker accepted the state guarantee for its lending arm in October. But GM’s Opel denied rumors and said that the alliance with Peugeot is ‘fully on track.’ In February the two companies announced they were considering a full merge of Peugeot with GM’s European unit Opel.