Peugeot Battles Cash Crunch as European Carmageddon Persists
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PSA Peugeot Citroen, the carmaker most exposed to slumping European auto demand, will probably see its cash cushion shrink in 2013 with industrywide sales in the region due to contract for the sixth straight year.
Peugeot will run through about 1.7 billion euros ($2.2 billion) of its 8 billion euros in cash reserves in 2013, according to estimates by CM-CIC Securities analyst Florent Couvreur. The burn rate may bring the carmaker closer to a liquidity crunch as its market share erodes further.