French carmaker PSA’s sales hold up despite pandemic

French auto giant PSA reported 3rd quarter sales on Wednesday, October 28, of 15.5 billion euros, down just 0.8% despite massive disruption caused by the coronavirus pandemic.

PSA, which groups the Peugeot, Citroen, and Opel brands, said that while it had sold fewer cars in the 3 months to September, it had improved profitability.

Over the 1st half of the year, PSA saw sales plunge 34.5% to 25.1 billion euros, with net profit down 67.5% at 595 million euros.

But in the 3 months to September, as the market recovered in line with some easing of virus restrictions, PSA sold 589,000 vehicles, down 12.7%, while generating revenues of 12 billion euros, up 1.2%.

“We prioritized profitability and generating cash,” the company said.

PSA pledged to stick with its previous 2020 forecasts, putting operating profit at around 4.5% overall for the period 2019-2021.

For this year, it expects the auto markets to suffer sharp declines – 25% in Europe, 30% in Latin America, 20% in Russia, and 10% in China.

PSA, which is in the process of merging with Fiat Chrysler, has cut costs sharply over recent years and continues to do so. – Rappler.com