Peugeot sales fall slows on boost from scrappage
French carmaker Peugeot Citroen yesterday said third-quarter revenues slowed less sharply than in previous quarters as it boosted market share in Europe, where governments launched car buying incentives.
The revenues fell short of analyst expectations which had been buoyed by forecast-beating earnings from German rival Daimler on Monday. European car makers have cut production and reduced costs after auto sales dropped by their biggest fall for 15 years in 2008 and government incentive schemes have helped attracting clients to showrooms again, and order new cars.
This has especialy boosted smaller models, such as a large part of the Peugeot and Citroen line-up, but not the bigger cars such as the C6 or Peugeot 607.
“What we have today is a revenue disappointment and no obvious sign of the large production re-ramp that many have anticipated,” Morgan Stanley analysts wrote.
Third-quarter revenue at the group fell 7.7 per cent, compared with a 24.9 per cent year-on-year fall in the first quarter and an 18.9 per cent drop in the second, Peugeot said. The carmaker said it had felt the benefit of scrapping schemes, whereby drivers get a discount on new models when they scrap their old vehicle.