Last Updated : GMT 11:47:51
Arab Today, arab today
Arab Today, arab today

Peugeot sales plunge 16.5% in 2012

Arab Today, arab today

Arab Today, arab today Peugeot sales plunge 16.5% in 2012

Paris - AFP

French auto giant Peugeot, recently rescued by the government, reported on Wednesday a 16.5-percent plunge of sales last year because of problems in southern Europe and Iran and despite strong demand in Russia and China. The group blamed the effects of the debt-crisis in southern Europe for the extent of the sales plunge. But the director for brands in the business, known fully as PSA Peugeot Citroen, said it expected sales to rise this year, excluding the sale of parts for assembly in Iran and despite expected further contraction of the European market. PSA is struggling to restructure its business with a controversial plant closure in France, the shedding of 8,000 jobs, a strategic alliance with US group General Motors and a drive to expand sales outside Europe. sales to rise this year but did not provide figures. He said in a statement that \"the group is being hit full blast by the lasting fall of European markets\" which he estimated would shrink a further 3.0-5.0 percent this year. He also said that PSA did not intend to reduce its holding of 57.4 percent in the manufacturer of car parts Faurecia. Shares in the group showed a gain of 1.04 percent to 6.28 euros in afternoon Paris trading, while the CAC 40 index of French blue-chips was up by 0.15 percent overall. PSA is the second-biggest car manufacturer in Europe after German group Volkswagen which is strongly placed on export markets for high-quality vehicles, but the French group\'s sales fell below the three-million level in 2012 to 2.965 million. By contrast Volkswagen announced in December that by the end of November it had beaten its sales in 2011, with a total of 8.29 million vehicles sold. A report in mid-year by the newly installed French socialist government, in response to the shock announcement of the job cuts by PSA, found that the group had made strategic mistakes over 20 years, notably by missing the trend towards globalisation. In October, the government guaranteed financial support for the group of 5.0-7.0 billion euros ($6.54-9.15 billion) in the form of support for the subsidiary providing credit to customers and dealerships. The government sent details of the support to European Union competition authorities after the EU questioned the decision. Government spokeswoman Najat Vallaud-Belkacem said Wednesday: \"Aid provided by the French government was not strictly speaking state aid.\" PSA gave new insights on January 2 into its problems, saying that sales in its home market France had dropped by 17.5 percent last year. Sales in Italy, Spain and Portugal fell even harder. The group does 60 percent of its business in France and southern Europe. However, sales held up in Germany and rose in Britain. The group has factories in Russia and in China and sales in Russia surged by 7.4 percent to 78,000 and in China they rose faster than the market, by 9.2 percent to 442,000 vehicles. But the group suffered setbacks in Latin America, with delays in the extension of a factory at Porto Real in Brazil where it intends to double production capacity by 2015. Overall PSA is cutting its dependance on Europe, with sales elsewhere rising from 33.0 percent of the total in 2011 to 38.0 percent last year and towards a target of 50 percent in 2015. The statement said: \"Southern Europe, where PSA Peugeot Citroen has a particularly large presence, was hit hardest, with the market down 13.3 percent in France, 14.9 percent in Spain and 20.9 percent in Italy.\" \"The decision to suspend sales of CKD units in Iran as from February in compliance with international regulations, which made it impossible to finance Iran-bound sales due to tighter international sanctions, also impacted Group sales in 2012,\" PSA said. CKD stands for complete knock-down and is an industry term for a complete kit needed to assemble a product. Peugeot\'s decision to suspend business in Iran was to comply with international sanctions against the Islamic republic over its nuclear programme. The firm also came under intense pressure from Washington lobbies to shut down its thriving operations in Iran after General Motors acquired a 7.0-percent shareholding in PSA.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today peugeot sales plunge 165 in 2012 Arab Today, arab today peugeot sales plunge 165 in 2012


Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today At Milaidhoo Island, Maldives

GMT 08:42 2016 Wednesday ,07 December

At Milaidhoo Island, Maldives
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today As West watches Aleppo slip away

GMT 08:15 2016 Saturday ,10 December

As West watches Aleppo slip away
Arab Today, arab today 'Rookie' Trump must fall into line

GMT 08:02 2016 Tuesday ,06 December

'Rookie' Trump must fall into line

GMT 14:14 2016 Saturday ,10 December

Lufthansa names VP for EMEA sales region

GMT 13:59 2016 Saturday ,10 December

Zain KSA appoints Kaliaropoulos as CEO

GMT 13:52 2016 Saturday ,10 December

GACA’s new agreements to provide opportunities

GMT 11:25 2016 Saturday ,10 December

Tesla and McLaren now included in Takata airbag recall

GMT 05:54 2016 Saturday ,10 December

ICD deal to boost Azerbaijan investment push

GMT 05:45 2016 Saturday ,10 December

Coca-Cola CEO to step down next year
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today The summer school raising aspirations

GMT 12:49 2016 Tuesday ,06 December

The summer school raising aspirations
Arab Today, arab today Ryan Gosling, Emma Stone immortalized

GMT 12:31 2016 Thursday ,08 December

Ryan Gosling, Emma Stone immortalized
Arab Today, arab today Australia's Rinehart, China group

GMT 10:02 2016 Friday ,09 December

Australia's Rinehart, China group
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today Kirk Douglas at 100, still in love

GMT 12:19 2016 Thursday ,08 December

Kirk Douglas at 100, still in love
Arab Today, arab today Swiss unveil stratospheric solar plane

GMT 13:47 2016 Thursday ,08 December

Swiss unveil stratospheric solar plane

GMT 10:48 2016 Tuesday ,06 December

France bets on Bollywood

GMT 10:52 2016 Tuesday ,06 December

Vanessa Redgrave makes directing

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 11:39 2016 Tuesday ,06 December

Indonesia expands protection

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 13:17 2016 Friday ,25 November

Ajman Tourism launches time capsule

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:08 2016 Saturday ,10 December

Samsung Galaxy A8 arrives in Saudi market

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday