Peugeot-Citroen has announced a €343m (£308m) net loss for 2008 after its sales slumped by 7.4 per cent.
France’s largest car maker said that revenue had declined by 7.4 per cent to €54.4bn (£49bn), a stark contrast to 2007, when the company reported profits of €885m (£797m).
Peugeot-Citroen doesn’t expect to reverse its fortunes in 2009, and is forecasting a similar level of loss for this year.
The French government has recently announced new measures to stimulate the French economy and encourage people to continue buying new cars. Customers will receive €1000 (£900) from the government when replacing a 10-year-old car with a more modern, lower-CO2 vehicle.