Fleet News

Peugeot profits slide to £4.9m

PEUGEOT made profits of just £4.9 million from its UK operations last year - down from £9.5 million over the previous 12 months. The company blamed poor demand and tougher competition - especially in the fleet market - and an ageing product mix and also noted a slip in market share from 7.7% to 7.4%.

Peugeot managing director Richard Parham, speaking exclusively to Fleet News, said the figures left him with a degree of disappointment. He said: 'No one likes a reduction of profits year on year but in the light of a difficult market and the rise in the French franc against sterling we are pretty satisfied with the result. It has been due to a great deal of effort within the company to improve productivity.'

Asked whether the fall in profits would mean higher prices for the product, Parham said: 'Not specifically - no.'

Meanwhile, the head of the whole company, PSA chairman Jacques Calvet reported a profits plunge from £408 million to £223 million and said he expected another lacklustre year. And he warned the European Commission that more rules on emissions would cut profit margins further resulting in job losses. In Europe the group took a 12% market share in third place behind Volkswagen-Audi and General Motors.

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