PSA Peugeot Citroen announced its sales dropped 16.5% in 2012 as the automaker struggled with the European crisis and withdrew from Iran.
Data shows that PSA Peugeot Citroen delivered 720,000 vehicles in 2012 in Europe, a drop from 901,000 vehicles in 2011. The automaker’s global sales fell to 2.97 million vehicles last year from 3.55 million in 2011, due to a dramatic drop in demand in Southern Europe.
“PSA Peugeot Citroen has felt the full force of the sustained decline in Europe’s automobile markets,” brands chief Frederic Saint-Geours said in the statement.
The French automaker predicts a further 3%-5% decline for this year in the European market, where the company’s market share saw a decrease to 12.7% in 2012. Last year the automaker also tried to expand in emerging markets by making a model-development partnership with GM and introducing the Peugeot 301 sedan in Turkey in November. Peugeot’s sales were also affected by the fact that the company stopped providing kits to an Iranian partner in line with international trade sanctions.
“The sales figures look as bad as one would expect,” said Sascha Gommel, an analyst at Commerzbank AG. “The company is suffering heavily in Europe, but also in other regions like Latin America, and losing market share to competitors such as VW and Hyundai Motor.”