PSA Leads Renewed Decline in Europe in May image

PSA Peugeot Citroen reported sales in May down 13.2% to 115, 191 vehicles.

Last month Peugeot sold 115, 191 units, down 13.2%, compared with the same month last year when sales reached 132,670 units. During the first five months of the year Peugeot’s sales dropped 13.9%. Maxime Picat, head of the manufacturer’s Peugeot brand, said that competition in Europe becomes tougher as more automakers are offering big incentives. In April auto sales increased for the first time since September 2011.

Unfortunately the slight sign that industry might begin to rebound was shadowed by the dramatic drop in May. Peugeot predicts that auto sales in Europe will drop 5% this year, the sixth consecutive year of decline. 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.

PSA Peugeot Citroen has started a new round of negotiations with its labor unions regarding cost and labor issues. The negotiations started at the end of May and are to last until October, being aimed at building on a restructuring programme which is already under way, and includes the closure of the Aulnay plant and the loss of more than 6,000 employees.