PARIS--Vehicle sales of French auto maker PSA Peugeot Citroen
(UG.FR) fell by 4.9% in 2013 compared to the previous year,
hindering the loss-making company's efforts to return to
profitability.
Peugeot is engaged in advanced discussions with its Chinese
partner Dongfeng Motor Co and the French state about a capital
injection of some three billion euros ($4 billion) that it needs to
be able to finance industrial, research and development and
commercial projects to ensure its future in an increasingly
difficult marketplace.
The company's board, meeting on Sunday evening, gave the
go-ahead for executives to negotiate the terms of the capital
restructuring that will see Dongfeng and the state become core
shareholders. The financing will also involve a rights issue.
Europe's second-largest automobile manufacturer by volume after
Germany's Volkswagen AG (VOW.XE) said Monday it had sold a total of
2,819,000 vehicles last year. However, the company pointed out that
sales of its assembled vehicles rose by 4% in the last three months
of the year compared to the same period of 2012.
Peugeot said 42% of its sales last year were outside Europe, up
from 38% in 2012, and said it remains on track to bring this up to
50% by 2015.
Peugeot's sales in Europe fell by 7.3% in a market that
contracted by just 1.6%.
Peugeot has been losing market share steadily in its core
European market in recent years. Its share shrank to 11.1% last
year from 11.9% in 2012 and 13.5% in 2007, before the financial
crisis sparked by the failure of Lehman Brothers hit the global
economy, according to data collated by the European auto
manufacturers' association.
Peugeot was saved last year by a 26% surge in its sales in
China, in a market that grew by 19%. Like other European auto
makers, China is fast becoming Peugeot's most important market.
Peugeot's sales in Latin America rose by 7% in 2013, but dropped
by 22% in Russia, where the group's product line-up was ill-adapted
to local consumer tastes.
Write to David Pearson at david.pearson@wsj.com
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