PSA Group profits up in first half of 2019 despite market downturns
PSA Group has announced an increase in profits for the first six months of 2019 in the face of a market dealing with significant issues.
The French firm, which owns Peugeot, Citroen, DS, Opel and Vauxhall, saw its first-half consolidated profit rise by 16 per cent like-for-like from €1.713bn to €2.048bn on revenue that dipped by 0.7 per cent from €38.595bn to €38.34bn.
The group sold nearly 13 per cent fewer vehicles in the first half of 2019 compared with the same period in 2018 – down from 2.18m to 1.9m – reflecting a growing weakness in several key markets, including China, which is one of its biggest buyers.
Carlos Tavares, chairman of Groupe PSA’s managing board, said: “Thanks to our focus on our strategic plan execution, we have delivered strong free cash flow and recurring operating margin in H1.
“We are ready for electrification and to embrace the next technological challenges. Our agility and aligned management team remain key assets to reach the targets of the Push to Pass plan.”
The push towards electrification and elevated costs associated with developing new and more complex electric vehicles is one of the main obstacles for car manufacturers across the globe. However, PSA is on track to have 29 per cent of its line-up electrified by 2020, and looks to have 100 per cent of it electrified by 2025.