Reuters logo
Peugeot trims GM alliance ambition as sales fall
October 23, 2013 / 5:38 AM / 4 years ago

Peugeot trims GM alliance ambition as sales fall

PARIS, Oct 23 (Reuters) - PSA Peugeot Citroen said its alliance with General Motors may be scaled back, as the troubled French carmaker posted a 3.7 percent quarterly revenue decline.

Plans for a joint small-car programme with GM are “under review”, Paris-based Peugeot said on Wednesday as the company continues to lose ground to rivals in Europe.

“As a result, the announced mid-term (alliance) synergies may be readjusted downwards,” Peugeot said in a statement.

Peugeot, a distant European second to Volkswagen by sales, is fighting to rein in losses by cutting domestic jobs and plant capacity while pursuing tie-up talks with Chinese partner Dongfeng Motor Co..

Revenue fell to 12.11 billion euros ($16.68 billion) in the three months ended Sept. 30 from 12.58 billion in the year-earlier period, Peugeot said.

The carmaker has continued to lose European market share this year to VW and other major competitors. Currency effects also contributed to the sales decline, it said.

Peugeot nonetheless reiterated its goal to cut 2013 operational cash consumption at least by half to 1.5 billion euros, with a further “very significant reduction” of cash consumption next year.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below