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PSA Revenue Shrinks 7%
PSA Peugeot Citroen's revenue slid to €13 billion in the first quarter of 2013 from €13.9 billion a year earlier.
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PSA Peugeot Citroen's revenue slid to €13 billion in the first quarter of 2013 from €13.9 billion a year earlier.
Revenue from PSA's auto operations dropped 10% to €8.7 billion. The company's worldwide vehicle deliveries fell 3% to 674,000 units, including declines of 17% in Europe and 27% in Russia.
PSA confirms that it plans to raise €200 million from asset sales this year. The company reiterates its goal of halving its automotive cash outflow in 2013 to about €100 million per month and becoming cash flow neutral by the end of next year.
PSA confirms a news report last week that it could shutter its plant in Aulnay, France, as early as this year because strikes continue to disrupt output. The company had planned to close the facility sometime in 2014.
PSA expects Europe's car market to shrink 5% this year. The company says if the region's sales are worse than expected in 2014, it will enact new measures to cut costs and improve competitiveness. Those could include reduced capital spending and a new push for more competitive labor agreements, according to PSA.
The company is scheduled to begin contract talks with its unions in the current quarter. Last month PSA concluded a bruising round of negotiations with French unions that allow it to shed 11,200 workers in the country and close the Aulnay factory.
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