Peugeot’s global sales grow 5.5%

Peugeot’s global sales grow 5.5%

Peugeot has announced a surge in profits for the first half of 2014 and believes new models in Australia and the introduction of LCV’s in New Zealand will see it’s earnings increase even further in the second half of 2014.

PSA Peugeot Citroen narrowed its first-half loss and posted the first positive contribution from its core auto division in three years, as the French carmaker’s recovery plan has started to take shape.

Peugeot says that the launch of the new Peugeot 308 in Australia later and New Zealand in the second half of 2014, and the introduction of light commercial vehicles in New Zealand should have a positive impact on the group’s second-half performance in the region.

Paris-based Peugeot announced that it has reduced net loss to 114 million euros (A$163 million) from 471 million a year earlier. “Our recovery plan is already producing results on all fronts,” chief financial officer Jean Baptiste de Chatillon told a press conference on Wednesday.

New chief executive Carlos Tavares pledged to trim the model line-up by almost half, cut capacity, raise price positioning, and pare wage and component costs to lift the automotive operating margin to 2% in 2018 and 5% by 2023.

Commenting on the publication of the first-half sales results, Tavares says: “At the end of this first half, I am pleased to see the Group return to sales growth. Our ‘Back in the Race’ strategic plan is producing its initial results, as the 5.5% increase in our worldwide sales attests. However, we need to remain focused on executing our roadmap, as the external environment is still unstable, particularly in Europe, Latin America and Russia.”

Chatillon says that the recovery was particularly strong in the auto division which had turned in an operating profit of 7 million euros from a loss of 538 million euros in the first half of last year.

In the second half, PSA Peugeot Citroën will continue to differentiate its three brands — Peugeot, Citroën and DS — and develop its more targeted global product plan to cover the market more effectively.

The tighter pace of new launches should allow the Peugeot, Citroën and DS brands to improve their price positioning. The recent introductions of the Peugeot 108, Citroën C1, Citroën C4 CACTUS, combined with the upcoming launches of the new Peugeot 508 in Europe and the Premium DS 6WR SUV and the new Peugeot 408 in China, should support this strategy and strengthen the brands’ sales performance worldwide.

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