PSA cuts first-half net losses to 114 million euros

Article by Christian A., on August 1, 2014

PSA/Peugeot-Citroen managed to cut its net loss in the first half of 2014 to EUR114 million ($153 million) from EUR471 million in the same period in 2013. The French carmaker saw its operating cash flow surge to EUR1.67 billion ($2.23 billion) in the first six months of 2014 from just EUR203 million a year earlier, which could be attributed to a push by chief executive Carlos Tavares to cut vehicle inventories and get rid of supply-chain inefficiencies.

Likewise, its auto division posted its first operating profit in a while at EUR7 million, despite stiff currency headwinds. The auto division’s operating loss in the same period last year was EUR538 million.

Chief Financial Officer Jean Baptiste de Chatillon remarked that PSA’s recovery plan is already producing results on “all fronts," adding that pricing had gotten better.

Tavares has vowed to hike PSA’s automotive operating margin to 2 percent in 2018 and 5 percent by 2023 by reducing its model lineup by nearly half, trimming capacity and raising price positioning as well as by cutting wage and component costs.

He added that PSA needs to remain rational and recognize that they only at the beginning of its turnaround. Tavares provided an account of his efforts to push for leaner manufacturing that results to more cash as it cuts stocks of parts and vehicles."

He said that there is a “very joyful implementation” of new ideas that delivered “great results." PSA is targeting to trim EUR1 billion from stocks of parts, materials and finished vehicles via better supply-chain management. ISI Group analyst Erich Hauser remarked that PSA is actually performing well ahead of plan.

Topics: psa, loss

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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