The Peugeot Group this morning in Paris posted Q3 revenues of €12.1 billion, down -3.7%. Automotive revenues were €8 billion, down -5.8%. Vehicle sales declined to 610,400 units in Q3, down -2.4%, tallying at 2,070,500 units in the first nine months, which is off -1.5% compared with the same period in 2012. Sales dropped in Europe, Brazil and Russia, but this was partially offset by growth in China, Argentina and the Mediterranean basin.
Revenue from the sales of new vehicles was €5.518 million compared with €6,125 million in third-quarter 2012. This is a -9.9% decline, and was primarily due to the sharp -7.3% drop in assembled vehicle sales outside of China. Peugeot also said an unfavorable market mix, Group pricing and growing pressure on market share from premium and low cost brands in Europe hurt results. There was also a -5% currency effect, attributable to the Russian ruble, Brazilian Real, Argentine Peso and British Pound.
The French automaker said it continued to work on a turnaround plan, which for the quarter saw sales of assembled vehicles outside of Europe at 42% of total unit sales at the end of September 2013 compared with 36% in 2012. Peugeot is known to be talking with Chinese automaker Dongfeng about further collaboration.
The Alliance with GM produced its first results as the new Joint Purchase Organization is now running with savings of around €60 million predicted this year. During the Quarter, and announcement of the manufacturing of B- class MPVs on a PSA Peugeot Citroën platform at the General Motors plant in Zaragoza, Spain was another alliance achievement since it was signed in December 2012. The vehicles will come to market in late 2016. Projects are also underway for the development of C-MPVs and crossovers.
However, the development of a new joint platform for B segment models with GM is “under review,” which translated from p.r. talk means it is not going to happen. This high volume segment currently occupied by the Peugeot 208, Citroen C3 and Opel Corsa looked to be a promising area for cooperation and was key to the promised $1 billion annually in savings for each company that was claimed when the alliance was announced.
