PSA Peugeot Citroen, a France based car manufacturer, has announced a loss of €5bn for the 2012 financial year.
A €4.7bn asset write-down is largely responsible for the loss, which compares with a €588m profit for 2011. Group revenues saw a 5.2 percent drop to €55.4bn, with the automotive division registering a 10.3 percent drop in revenue.
PSA is involved in a €1.2bn cost-reduction programme that it claims to be on target to exceed. PSA managing board chairman, Philippe Varin, said, ‘The Group’s 2012 results reflect the deteriorated environment in the automotive sector in Europe. In this context we have taken the difficult but necessary measures to reorganise our manufacturing base in France.’
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