Struggling French carmaker PSA Peugeot Citroen’s global sales have plunged.
As the eurozone crisis hit consumer demand in Europe, Peugeot’s sales outside the region have not increased fast enough to compensate.
France, Spain, Italy and Portugal – the worst hit markets – still account for more than half of Peugeot’s regional business.
Overall sales are down 16.5 percent from the previous year, and the company suffered its worst European sales performance in years with a 14.8 percent drop.
The global sales plunge was made worse by Peugeot responding to international sanctions and pulling out of Iran where it used to send cars in knock-down form to be assembled locally. That wiped 313,000 vehicles from its total.
Peugeot is cutting 10,000 jobs and closing production capacity to stem its mounting losses, which has angered French unions.
With a further three to five percent decline in sales forecast for the European market this year, Chief Executive Philippe Varin has warned the company won’t return to profit before 2015.