PSA Peugeot Citroen has posted revenue down 6.5% to EUR13bn (US$16.9bn) for the first quarter of this year, with the automotive division sales also falling 10.3% mirroring a 10% contraction in the European market.
Revenues rose 1.7% at its supplier division, Faurecia, but fell 9% at Banque PSA Finance.
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Despite the difficulties in Europe, PSA maintains there were strong increases in China sales, while its restructuring plan for French industrial activities is approaching the implementation phase, following agreement by five unions on 18 March. Inventory was down 134,000 units
“The period was shaped by a persistently tough environment, with sharp downward pressure on European volumes, difficult markets in France and Germany and declining demand in Southern Europe, which unfavourably impacted the country mix,” said a PSA statement.
“Pricing pressure, which continued unabated from fourth-quarter 2012, was exacerbated by an unfavourable distribution channel mix, with a decline in retail sales and an increase in fleet business.
“This environment is expected to persist throughout the first half of the year.”
For the full year, the Group expects automobile demand to contract by around 5% in the Europe 30 region, to grow by around 8% in China, 2% in Latin America and stable in Russia.
