It’s not much more than two years since the PSA Group avoided going bust thanks to investment by Chinese car maker Dongfeng and the French government.
But today’s financial results show that the car maker is in much better health. The company’s automotive division saw its profits leap from £817 million in the first half of 2015 to £1.09 billion in the first half of 2016.
PSA’s Faurecia components division also saw profits up in the first half of 2016, from £291m to £411m.
PSA's automotive profit margin hit a highly impressive 6.8%. That’s not only creeping towards premium territory but it’s also way ahead of Ford and GM’s European operations (the former swung marginally into profit last year and latter is hoping to do the same this year), as well as being well ahead of the Volkswagen brand’s expected margins of around 2%.
There’s also hope for the future, because the PSA Group spent a healthy £789m on research and development in the first half of this year, so new product development looks relatively healthy.
It wasn’t all plain sailing, however. The Chinese market in the first half of the year was a disaster, with sales across the Peugeot, Citroën and DS brands down from 296,500 units from 368,070. The Middle East and Africa territory wasn’t great either, down from 100,856 to 87,420.