PSA Peugeot Citroen posts 13 percent drop in European deliveries image

Troubled times for Europe’s second-biggest carmaker, PSA Peugeot Citroen. The French company announced that its deliveries for the first six months of 2012 slumped 13 percent, due to weak demand from Europe.

PSA Peugeot Citroen delivered 1.62 million vehicles in the first half of this year, from 1.86 million in the same period last year. The French giant blamed Europe’s „very weak” economic environment, as demand for cars and light commercial vehicles fell 7.2 percent on the continent.

With analysts expecting even worse times for European markets, it’s no wonder PSA Peugeot Citroen plans to send home 10,000 workers from its French plants. Earlier today the company denied that it is seeking a loan from the French state.

The carmaker also announced that its market share in Europe fell from 14 percent to 13 percent, while deliveries to other regions rose to 39 percent of the company’s total in the first half from 38 percent the year before.

PSA Peugeot Citroen sales in China grew 7.2 percent to 209,000 units, fueled by demand for the Peugeot 308 and Citroen C4 sedans. In Latin America however, sales fell 21 percent due to higher sales tax in Brazil and slowing economy.