The French automaker, Europe’s second-biggest carmaker, after the VW Group, forecast a fourth-quarter market share increase on the continent because of increased demand for its new models.
Peugeot, which saw a first-half operating loss of 510 million euros ($691 million), has already spent 3 billion euros last year. The automaker is now mulling stake sales via a capital increase to Chinese automaker Dongfeng and the French government to address funding needs, according to sources.
“We’ll have a clear improvement of our market share” in the last quarter compared with the 11.5 percent achieved in the third quarter, Chief Financial Officer Jean-Baptiste de Chatillon said. The new 2008 small crossover and the 308 hatchback will be the main pillars of growth, he added.
“There’s absolutely no problem of liquidity or financial security,” Chatillon said. “We’re actively working to identify valuable and profitable industrial partnerships. There’s no project that has reached a maturity that would allow us to comment.”
The stock has already dipped 16% this week because investor feared the state of the automaker’s financing. The French company today has a market value of just 3.49 billion euros. The shares went down a record 1.16 euros, or 11%, to 9.56 euros in Paris trading today and were down 6.7% as of 3:15 p.m.