PSA Peugeot Citroen’s China joint venture expects a better second half profit in the second half of 2006 than achieved in the first.
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“The second-half profit would exceed the first half, and we could stay profitable in 2007,” deputy general manager Claude Vajsman told Reuters, which noted that the 14-year-old car venture in central China posted 191m yuan ($US24.26million) of net profit in the first half of this year, after a year-earlier net loss of 636 million yuan, helped by the hot-selling Peugeot 206 and Citroen C-triomphe.
“We are running three shifts since January this year to keep up with demand,” Vajsman told the news agency.
Reuters said the venture, which is doubling its annual capacity to 300,000 vehicles by 2008, moved 160,575 cars in the first 10 months, up 37.65% from a year earlier and aims to sell more than 200,000 units in the full year, an increase of more than 40% from the previous year.
Vajsman reportedly said said the venture aimed to raise its share to 7% in 2009-2010, by broadening its product range and selling in second- and third-tier cities which have started to embrace the car culture prevalent in big coastal cities.
