Stable results for Groupe PSA despite drop in sales

Worldwide
Published:  24 October, 2019

Third quarter revenue for the French automotive Group, which owns seating supplier Faurecia, increased 1% to €15.6 billion, with automotive division revenue up 0.1% to €11.8 billion.

Groupe PSA’s automotive division revenue amounted to €11,824 million in the third quarter of 2019, up 0.1% year-on-year, attributed to a strong product mix (+4.4%) and positive price conditions (+1%), which are said to have more than offset the decrease of sales to partners (-3.2%), the negative impact of exchange rates (-0.8%), including hyperinflation in Argentina as well as volumes and country mix (-0.7%) and others (-0.6%). The strong product mix stems from the success of the Group’s last launches, in particular Citroën C5 Aircross (+353,4% to 85 134 units), Peugeot 508 (+396% to 44 699 units), DS 3 CROSSBACK (+6643% to 14,902 units) and Opel Vauxhall Combo (+175,2% to 46,647 units).

Globally, the French automotive Group has sold 674,000 cars in the quarter, with market share in Europe up 0.1%. Compared to most of its competitors, Groupe PSA is said to have benefited from its low exposure to headwinds in international markets. Sales are reported to have dropped considerably in China over the past five years, where it has become a marginal, and after withdrawing from Iran under the constraint of U.S. sanctions in 2018, Europe now concentrates 90% of its volumes.

In the third quarter, Faurecia’s revenue totalled €4,185 million, up 4.3%, leading the automotive seating and parts supplier to confirm its 2019 guidance. Read more here.