Europe’s second largest automaker, which was until now hit by the almost six years slump in demand in the European market, enjoyed a profitable first quarter in 2014, thanks to the region’s rebound.
PSA Peugeot Citroen reported its Q1 revenue went up slightly, by 1.9% as sales went up to 13.3 billion euros ($18.4 billion) from 13 billion euros in the same period last year. Deliveries for the period jumped 16% in Europe and 18% in China.
“Our priority is to make our group profitable again,” said Chief Financial Officer Jean-Baptiste de Chatillon . “Our first focus is our pricing power and the strict management of our prices.”
As demand in the European region is only now starting its recovery from a two-decade low, the automaker – which had big losses in the last two years, has teamed up with China’s Dongfeng Motor to ease dependence on its home markets.
The French carmaker is now predicting Europe’s car market to rise by around 3% for 2014. Later on today the PSA shareholders will vote on whether to approve the capital increase deal in which both Dongfeng and the French state will take matching 14% stakes in the automaker in exchange for around 800 million euros. At the same time, the Peugeot’s family stake in the automaker would fall from a controlling 25.5% to the same 14%.