PSA Peugeot Citroën has announced it lost €5bn in 2012, largely due to a €4.7bn write down on assets. The loss compares with a €588m profit in 2011.
Group revenues fell 5.2 per cent to €55.4bn, while the automotive division's revenues finished the year down 10.3 per cent.
Last summer, PSA revealed a programme to cut costs, which included the planned closure of the firm’s Aulnay plant, which had been running under capacity for some time.
Despite the Aulnay closure being delayed due to union action, PSA said that it is on-track to exceed its €1.2bn cost-reduction programme. It also plans to dispose of assets worth €2bn and reduce its inventory.
Philippe Varin, PSA managing board chairman said: “The Group’s 2012 results reflect the deteriorated environment in the automotive sector in Europe. In this context we have taken the difficult but necessary measures to reorganise our manufacturing base in France."
PSA underlined its commitment to the alliance with GM. Varin said: “The foundations for our rebound have been laid. We are going to build on the strong identity of our brands and differentiate their customer territories. We are going to focus our investments, actively restore our profitability in Europe and reap the benefits from our investments in growing markets.”
The group reduced net debt by €211m to €3.1bn, while the automotive division saw debt fall by €712m to €1.25bn.
PSA said its hopes for the coming year have been buoyed by the Peugeot 208 becoming the biggest seller in its class in December and the firm reaching second position in the European hybrid car market.
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Stereotypes
I'd like to add some on the issue of reliability. I know five Peugeot owners (206, 208, 307, 308CC and 407).
Out of these three have never experienced any problems with their cars and would buy Peugeots again.
Two of these have experienced problems starting up their cars in cold mornings. And that's it. No engine failures in my knowledge.
I'm sure their production
I'm sure their production facilities would be welcome in the UK if the French unions scupper the cost reductions. Trouble is, it'd be too late by then.
Broken beyond repair
Badly built cars that are rubbish to drive and break down a lot. That's what PSA now stands for.
Where are the 205's, 306's, 405's Peugeot? What about the CX or GS Citreon?
If your cars are badly built and unreliable you've got to make them at least so people desire them so so much that they will put up with that.
Has anyone ever lusted after a 308?
Soren Lorenson wrote: Badly
Have to agree. The 406 was the last decent model they made and everything since then has been a dud that has lead to the ugly, unreliable and rubbish to drive cars they produce today.
Are you sure?
Soren, I agree you might not lust over a 308 but can you really say peugeots are badly built, break down a lot and are bad to drive?! Nothing personal, but what backs up these sweeping claims? Being in the industry I can assure you there are very well respected German companies who score lower than Psa in real trade surveys yet for some reason have better perceived quality. Even if you'd prefer to buy a Golf you have to commend Psa for their effort in pushing design and innovation, ds3, ds4, ds5 for starters. The world would be less interesting without them. Who else makes such interesting and original concept cars so frequently. Hyundai and kia certainly appreciate Psa Products. Look at the front of the Kia GT then the Citroen GT... Even the name...
I think they are a bit down on their luck at the moment and if you can't quote fact then you shouldn't kick a man when he's down. Many people's jobs are on the line...