PSA Peugeot Citroen is presenting a bullish estimate of year-end performance, with China and Latin America particularly positive.
The automaker believes the Chinese market should grow by nearly 20%, while growth in Latin America should be nearly 10%.
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In all of these markets, the Group expects to increase its market share during the full year, although the European arena is now estimated to be down 5% for 2010.
The Automotive Division is now expected to break even in the second half and the Group says it should report recurring operating income for the year of more than €1.5bn (US$2.1bn). Net debt of the manufacturing and sales companies at 31 December 2010 should be at a similar level to the end of June 2010 representing a reduction compared to the end of December 2009.
Automotive Division sales rose by 2.3% to EUR9.5bn in the third quarter of 2010, taking the year-to-date increase to 9.8%. Growth was led by market share gains both in and outside Europe and by firm demand in international markets.
The Group’s worldwide sales totalled 808,400 vehicles in the third quarter, up 2.6%, with sales of assembled vehicles 0.8% higher at 699,000 units. Worldwide sales in the first nine months came to 2,664,100 vehicles, an increase of 12.2%.
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By GlobalDataRevenues from new vehicle sales were stable in the third quarter at +0.2%. Lower unit sales of assembled vehicles had a 1.8% negative impact – excluding China – changes in product mix had a positive effect of 5.8% and changes in net prices had a 1.5% negative effect giving an overall positive effect of 4.3%.
PSA said as expected, European automotive markets declined in the third quarter, contracting by 11.4% overall, with registrations down 10%.
Western European markets narrowed by 11.8%.
The biggest falls were in Germany (down 23.4%), Italy (down 21.2%) and Spain (down 23.6%), due to the withdrawal of scrappage incentives in these countries.
The market was more resilient in France, where scrappage incentives were reduced, with car and light commercial vehicle registrations down 6%. In the UK where scrappage incentives ceased last summer, the market declined by 8.3%.
The trend in Central and Eastern Europe also remained negative, with registrations down 5.1% in the quarter.
New products helped to lift PSA market share in Europe to 13.7% in Q3 from 13.5% in the same period of 2009. The strongest gains were in the UK – up 0.8 points to 10.2% – Italy – up 0.2 points to 11.5% and Central and Eastern Europe – up 0.1 points to 9.6%.
Market share remained almost unchanged in France at 32.3%, but declined in Germany to 5.5% and in Spain to 17.6%.
Group registrations in Europe in the first nine months were up 2% and its market share was 0.7 points higher at 14.3%.
The French automaker noted “after two gloomy years in 2008 and 2009,” the light commercial vehicle market started to recover in early 2010 and the trend was confirmed in the third quarter with total registrations for the period up 8.7%.
Following “a very challenging 2009” and a weak first-quarter 2010, the Russian market grew 52.3% in the third quarter. Group registrations in this market rose 71.1% and market share rose to 3.2% in the third quarter – 2.8% for the first nine months of 2010. Local production helped the Group to restore growth momentum and increase market share.
Latin American markets – Brazil, Argentina, Mexico and Chile – grew 11.8% led by increases of 32.7% in Argentina and 6.5% in Brazil. Group registrations for the quarter rose 26.2%, while market share in the region was 0.8 points higher at 5.8%.
China was also “very dynamic with demand rising 17.7% in the third quarter. The Group’s market share improved to 3.4%, reflecting 30.9% growth in registrations. A contract was signed on 9 July for a second automotive Joint Venture in China that will produce complementary line-ups to DPCA.
It also strengthened its partnership with Dongfeng Motors that will enable DPCA to achieve its goal of a 5% share of the Chinese market by 2015.
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