PSA China sales plunge in first 9 months
PSA Peugeot Citroen reportedly may sell one of its Chinese assembly plants after sales plunged 43 percent year on year through September to 242,000 vehicles.
Khodrocar - All three of PSA's brands reported sharp drops in deliveries through September: Peugeot's sales fell 31 percent to 161,300 vehicles, Citroen's declined 57 percent to 76,300 and DS deliveries plunged 61 percent to 4,400.
Under CEO Carlos Tavares, the French automaker has stumbled in China even as it enjoyed record profits in the rest of the world.
PSA is trying to sell or lease a plant in Wuhan -- one of the group’s five assembly plants in China, French daily Les Echos reported, citing unnamed sources.
Asked about the report, CFO Jean-Baptiste de Chatillon said PSA was determined "to face reality and to adjust costs when needed, and right-size [those] costs.”
The company will "get back on a growth path” in China and is not considering withdrawal from the market, Chatillon told analysts.
PSA has joint ventures with Dongfeng Motor Corp., which holds a 14 percent stake in the French automaker, and Changan Automobile Co.
The Dongfeng partnership produces vehicles for Peugeot and Citroen, while the Changan venture assembles cars for DS. This month, Changan and PSA announced plans to produce a pickup for sale in China and overseas.
Source: Reuters
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