France's PSA Sales Hold Up Despite Pandemic

French auto giant PSA reported third quarter sales Wednesday of 15.5 billion euros, down just 0.8 percent despite massive disruption caused by the coronavirus pandemic

Paris, (UrduPoint / Pakistan Point News - 28th Oct, 2020 ) :French auto giant PSA reported third quarter sales Wednesday of 15.5 billion Euros, down just 0.8 percent 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 three months to September it had improved profitability.

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

But in the three months to September, as the market recovered in line with some easing of virus restrictions, PSA sold 589,000 vehicles, down 12.

7 percent, while generating revenues of 12 billion euros, up 1.2 percent.

"We prioritised profitability and generating cash," the company said.

PSA pledged to stick with its previous 2020 forecasts, putting operating profit at around 4.5 percent overall for the period 2019-21.

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

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