Peugeot Not Safe From Economic Slump

As with almost all car manufacturers globally, Peugeot has also been hit very hard by the current economic slowdown. They have recently reported that they are planning over 11,000 job cuts and cut its output by20 percent over the year to cope with the weakening demand. The is entirely expected after the huge losses and similar announcement by other giant car manufacturers.

Some excerpts from the announcement-

“PSA Peugeot Citroen announced a huge loss Wednesday and said it would cut its workforce by about 11,000, warning that the European car market could slump by a fifth this year...PSA Peugeot Citroen employed 207,850 people worldwide in 2007.

Peugeot sales fell by 7.4 percent last year from the 2007 level to 54.4 billion euros, reflecting a global drop in demand. Operating margin fell to 1 percent of sales from 3 percent in 2007. The firm posted a net loss of 343 million euros ($443 million) in 2008 - after making a profit of 885 million in 2007 - despite strong sales in the first half of the year before the credit crunch began to bite.

“... refused to comment on Italian reports that his group may enter into an alliance with Fiat but said existing tie-ups with BMW for engine production, Fiat for light trucks and Mitsubishi for 4x4s were strong and would continue.”

For more jump to the link below:

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=99268