PSA has recorded Group Q3 revenue down 5% to EUR11.4bn, while the first nine months saw revenue fall to EUR39.2bn, compared with EUR40.1bn last year.
Automotive division revenue dropped to EUR7.5bn compared with EUR8.1bn in Q3, 2015. Negative exchange rate effects (-4.7%) were partially offset by the positive price impact (+1.8%), reflecting the policy of improving the price positioning of the three brands, Peugeot, Citroën and DS.
Consolidated worldwide sales were up 10.6%. Ahead of major product launches in the fourth quarter, which are not yet visible in registrations, sales volumes declined in Europe, (-4.3%) and China, (-16.5%). In Latin America, they were up 22.6%.
In Africa Middle East, volumes increased, driven by sales of vehicles manufactured in Iran under Peugeot licence. As of end-September 2016, inventories totalled 400,000 vehicles (382,000 in the same period last year).
“The levers of the Back in the Race plan, especially pricing power and cost reduction, make us confident we will achieve the objectives of the Push to Pass plan, despite a more challenging external environment, particularly in respect of exchange rates,” said PSA board member, Jean-Baptiste de Chatillon.
For 2016, the Group expects the automotive market to grow by about 6% in Europe and 15% in China, while it estimates it will shrink by around 6% in Latin America and 15% in Russia.
The Push to Pass plan, has set the following targets:
. Reach an average 4% automotive recurring operating margin in 2016-2018 and target 6% by 2021;
. Deliver 10% Group revenue growth by 2018 vs 2015, and target additional 15% by 2021.