1st-half sales of PSA/Peugeot-Citroen fall as VW’s profits break records

Article by Anita Panait, on July 27, 2012

The next two days would be eventful for two of the largest car manufacturers in Europe. French carmaker PSA/Peugeot-Citroen will be reporting its first half 2012 results on July 25, 2012, while German auto company Volkswagen Group will also be disclosing its own earnings for the first six months of year. The two auto groups, however, are expected to present different fates.

PSA is predicted to divulge first-half losses, as it struggled to sell new cars in the first half of 2012. VW, meanwhile, is expected to disclose record profits, as it embarked to expand in other markets through the year.  The fates of these two carmakers could be traced from their strategies for the past decade.

While VW increased working hours for its German workers, established eight factories in China, opened a plant in the US and invested billions in Audi, its French counterpart almost did nothing. Rather, it failed to develop a luxury brand, gave up on the US market in the 1990s and had a slow start in Asia.

While VW has been very successful in posting profits, PSA is now trying to stave off oppositions from the French government over plans to lay off 8,000 employees and shut down a factory. 

Thilo Mueller, managing director of MB Fund Advisory GmbH, remarked that PSA “slept through some developments” and failed to capitalise on the success of individual models to attract more interest in the brand. According to median estimate of seven analysts surveyed by Bloomberg, PSA is bound to post EUR91 million ($110 million) in losses for the first half of 2012, while Bloomberg is destined to report a 5.6 percent increase in operating profit to a record EUR6.4 billion.

Topics: psa, peugeot, citroen, sales

If you liked the article, share on:

Pin It

Comments

Recommended

Uber has resumed its self-driving tests after having had to temporarily put them on hold following a crash in Arizona on Friday. A Volvo XC90, the test vehicle involved in...
by - March 30, 2017
Owning a supercar in the past meant you’ll have to compromise. But there’s no need for that anymore - thanks to the Ford Performance engineers. The company ensures that you...
by - March 30, 2017
Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries