Peugeot maker PSA's car revenue returns to growth after lockdowns

  • Under CEO Carlos Tavares, PSA, which is working through a merger agreement with Fiat Chrysler has also focused increasingly on its more expensive models, helping it ride out falls in sales volumes.    
  • Car sales in volumes fell, but this was offset by price effects. The company had said over the summer that new versions of its Peugeot 208 model and Opel's Corsa were boosting its order books.

Peugeot maker PSA Group on Wednesday posted a 0.8% decline in its third-quarter sales though revenue from its core auto division returned to growth after slumping during coronavirus lockdowns.

The car industry has benefited after dealerships re-opened in recent months, though some countries such as France are mulling fresh restrictions including a possible lockdown to fight a resurgence in the COVID-19 pandemic.

Under CEO Carlos Tavares, PSA, which is working through a merger agreement with Fiat Chrysler has also focused increasingly on its more expensive models, helping it ride out falls in sales volumes.    

PSA reported overall sales stood at 15.5 billion euros ($18.32 billion) for the July-September quarter, down 0.8% from a year earlier. Automotive revenue rose 1.2% to 12 billion euros, after ending the first half of the year down 35.5%.

Car sales in volumes fell, but this was offset by price effects. The company had said over the summer that new versions of its Peugeot 208 model and Opel's Corsa were boosting its order books.

PSA maintained its target to reach an adjusted operating margin for its automotive division of more than 4.5% for the 2019 to 2021 period. 

The group's $38 billion merger with FCA, set to create the world's fourth largest carmaker under the name "Stellantis", is due to close in the first quarter of 2021.

They are set to win antitrust approval for the merger from the European Commission, sources told Reuters this week.

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