Peugeot reports a €426-mn loss in first half of 2013

French carmaker PSA Peugeot Citroen has reported a loss of 426 million euros (USD 566 million) for the first half of the current year, amid continuing slump in car sales in crisis-hit Europe.

The company announced the negative result on Wednesday and reported a 13.3 percent decline in car sales in Europe in the same period.

This is a fresh setback to the automaker after it reported record five-billion-euro loss last year.

The company suffered greatly after it decided to end its trade with Iran in 2012, which resulted in losing half-million vehicle sales annually and an estimated 1.5 billion euros in revenue last year.

In an attempt to recover, the automaker has imposed several measures – including spending cuts and laying off 11,200 workers – due to be finalized by May 2014.

“By the end of December, we think that 3,500 people will have left the firm,” said Chief Executive Philippe Varin.

The carmaker has also decided to shut down its Aulnay-sous-Bois factory outside of Paris and another plant in the western city of Rennes, which has caused great anger among workers and unions.

The company is in negotiations with French unions to seek labor concessions, including flexible hours and mobility as well as a freeze in wages, in a bid to save 81 million euros over a full year.

The European car industry is in its sixth consecutive year of sales decline of which Peugeot is the region’s automaker that has seen the largest market slump.

On July 29, the European Commission cleared a nearly 572 million euros (USD 760 million) rescue package to Peugeot aimed at helping the company to recover.

By Press TV


The Iran Project is not responsible for the content of quoted articles.