Life & Style | Motoring
Peugeot sales could drop 20%
The head of Europe's second-biggest volume carmaker, Peugeot-Citroen, expects group sales to fall 20 per cent in 2009 and sees further pain in 2010 as the crisis wreaking havoc on the auto sector persists.
- Agencies
- Published: 23:04 February 10, 2009
Paris: The head of Europe's second-biggest volume carmaker, Peugeot-Citroen, expects group sales to fall 20 per cent in 2009 and sees further pain in 2010 as the crisis wreaking havoc on the auto sector persists.
Christian Streiff spoke fresh from signing a deal with the French government that provides three billion euros (Dh14.2 billion) in preferential-rate financing for Peugeot as well as for domestic rival Renault.
"The outlook for 2009 is terrible. We are working on the assumption that the market in 2010 remains difficult," Streiff told RTL radio. The share fell two percent in early trading.
PSA Peugeot Citroen is due to publish 2008 results today. On Monday France pledged loans for its struggling car makers and said PSA Peugeot Citroen and Renault had promised to safeguard French jobs in return.
French President Nicolas Sarkozy promised more help for carmakers' financing units and pledged to double a fund to support struggling auto suppliers, but the conditions imposed in return for state help met with criticism from other EU nations.
Some of France's EU partners have already protested over efforts by Sarkozy to protect French factories from the impact of the economic crisis and the European Commission said it would scrutinise his auto plan.
France is the latest European country to pledge to help its automakers -- Italy on Friday promised 2 billion euros for the flagging sector.
Falling car sales worldwide have hurt the French car industry as the credit crunch and worsening economic climate put the brakes on consumer spending.
Renault's alliance partner Nissan Motor Co has announced 20,000 job cuts by March 2010.
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