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Crisis hits Peugeot Citroen's sales

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Crisis hits Peugeot Citroen's sales

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Struggling French carmaker PSA Peugeot Citroen’s deliveries in the first half of the year tumbled as Europe’s economic downturn kept buyers out of the showrooms.

Europe’s second-largest motor manufacturer said sales worldwide were down 13 percent and fell 15 percent in Europe.

It is preparing to unveil cuts expected to include thousands of job losses and closure of a plant near Paris.

That is in addition to measures announced earlier this year under a one billion euro savings programme.

“The Peugeot and Citroen brands’ traditionally strong markets, France, Spain and Italy, are in profound crisis,” the company said, referring to a plunge in demand in markets where government’s are struggling to cut deficits.

Chief Executive Philippe Varin is scheduled to brief staff representatives on the cuts at a works council meeting next week, ahead of the company’s first-half results presentation on July 25.