Peugeot has announced a surge in profits for the first half of 2014 and believes new models in Australia and the introduction of LCV’s in New Zealand will see it’s earnings increase even further in the second half of 2014.
PSA Peugeot Citroen narrowed its first-half loss and posted the first positive contribution from its core auto division in three years, as the French carmaker’s recovery plan has started to take shape.
Peugeot notes that the launch of the new Peugeot 308 in Australia later and New Zealand in the second half of 2014, and the introduction of light commercial vehicles in New Zealand should have a positive impact on the group’s second-half performance in the region.
Peugeot currently offers two 308 SW models in Australia — a 1.6-litre turbo-petrol ($35,490) and a 2.0-litre turbo-diesel ($38,990) — but it’s not clear if the slow-selling wagon will survive beyond the current generation locally.
In Europe the new 308 SW will be offered with three engine types — a 1.2-litre turbo-petrol, plus 1.6- and 2.0-litre turbo-petrol engines, generating between 69 and 112kW of power.
The Peugeot 308 has already been released in Europe and will be unveiled later this year at the Paris Motor Show.
Paris-based Peugeot announced that it has reduced net loss to 114 million euros (A$163 million) from 471 million a year earlier. “Our recovery plan is already producing results on all fronts,” chief financial officer Jean Baptiste de Chatillon told a press conference on Wednesday.
New chief executive Carlos Tavares pledged to trim the model line-up by almost half, cut capacity, raise price positioning, and pare wage and component costs to lift the automotive operating margin to 2% in 2018 and 5% by 2023.
Commenting on the publication of the first-half sales results, Tavares commented: “At the end of this first half, I am pleased to see the Group return to sales growth. Our ‘Back in the Race’ strategic plan is producing its initial results, as the 5.5% increase in our worldwide sales attests. However, we need to remain focused on executing our roadmap, as the external environment is still unstable, particularly in Europe, Latin America and Russia.”
Chatillon adds that the recovery was particularly strong in the auto division which had turned in an operating profit of 7 million euros from a loss of 538 million euros in the first half of last year.
In the second half, PSA Peugeot Citroën will continue to differentiate its three brands — Peugeot, Citroën and DS — and develop its more targeted global product plan to cover the market more effectively.
Join the conversation