Peugeot Maker Improves Profit With Sales of Pricier SUVs
- PSA margin widens to 8.7% as firm pushes harder on cost cuts
- Carmaker confirms significant slowdowns in Europe, China
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Peugeot maker PSA Group’s profit margin widened to a record in the first half of the year as the French carmaker cut costs and used the sale of more expensive models as antidotes to the deepening slump in the global auto industry.
The company that also makes Citroen cars reported on Wednesday a first-half recurring operating margin of 8.7% at its automotive division, well above a target of at least a 4.5% over the 2019-2021 period. It also joined a chorus of rivals in confirming vehicle demand is slowing, predicting declines this year in both Europe and China.