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Peugeot warns of €2 billion loss as car sales fall

PSA Peugeot Citroën warned today that it expects to make an operating loss this year of between €1 billion (£855 million) and €2 billion as it continues to suffer from falling car sales.
PSA Peugeot Citroën warned today that it expects to make an operating loss this year of between €1 billion (£855 million) and €2 billion as it continues to suffer from falling car sales. The Paris-based carmaker said that customers are buying fewer, smaller, cheaper cars, while it is having to spend heavily on promotions to keep up its market share for both the Peugeot and Citroën brands. However, the group did say it now expected the European car market to decline less than it had feared, falling 12 per cent instead of 20 per cent. Peugeot blamed falling sales, combined with uncertainty over whether governments would continue to support the sector, volatile raw material prices and exchange rates for the forecast loss.
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