PSA sales nosedive on emerging-market mishaps

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PSA sales nosedive on emerging-market mishaps

On Monday, the 15th of July 2019, Groupe PSA, the French multinational manufacturer of automobiles and motorbikes, headquartered in Rueil-Malmaison, France, had issued a statement saying that Peugeot-maker’s sales had dropped by 12.8 percent during the first half of the year, as troubled emerging market operations had been weighing on its overseas businesses, meanwhile menacing recovery of the French automaker.

According to PSA sales data released on Monday (July 15th), earlier in European trading hours, sales of its light vehicles sold under brand names of Peugeot, DS, Opel, Vauxhall and Citroën fell to 1.9 million during the first and second quarter of the year, from 2.18 million a year earlier.

As a matter of fact, despite release of a flurry of downbeat sales data, share prices of the Peugeot SA, a subsidiary of Groupe PSA, were trading 1.36 percent higher to 22.33 euro per share during late European trading hours.

Nonetheless, the Groupe PSA, which had so far achieved record profits under Chief Executive Carlos Tavares, is scheduled to post its quarterly earnings report by July 24th. Adding that Groupe PSA’s management team had offset impacts of a global decline in sales, Tavares said in the company statement, “Despite the decline of the global automotive markets for this first half, our commercial teams have managed to increase market shares in several countries”.

Besides, PSA sales had experienced a sharp plunge all over the world, while its China sales had witnessed a heavy battering of 60.6 percent following collapse of its joint venture with local manufacturer Changan and Dongfeng.