Peugeot predicts modest sales growth in 2005

7th January 2005, Comments 0 comments

PARIS, Jan 7 (AFP) - PSA Peugeot Citroen expects a "moderate" increase in sales in 2005 after unit sales rose 2.7 percent to 3.375 million in 2004 from the previous year, the French carmaker said Friday.

PARIS, Jan 7 (AFP) - PSA Peugeot Citroen expects a "moderate" increase in sales in 2005 after unit sales rose 2.7 percent to 3.375 million in 2004 from the previous year, the French carmaker said Friday.

The French group, which claims a 5.6 percent share of the global automobile market, said that 2004 was marked by "stable demand in France and an increase in promotional rebates across Europe".

Looking ahead to this year, it said the rollout of three new models - the Peugeot 1007 and 107 and the Citroen C1 - would take place by mid-year.

"In light of these major line-up renewals and a market that will probably continue to see numerous promotional offers, PSA Peugeot Citroen is aiming for a moderate increase in sales in 2005," the company said in a statement.

In 2004, unit sales of the Peugeot brand rose to 2.027 million from 1.914 million the previous year, while the Citroen brand saw unit sales slip to 1.348 million from 1.373 million.

Full year unit sales fell to 2.424 million from 2.469 million last time in Western Europe, where the group's market share slipped to 14.7 percent in 2004 from 15.4 percent in 2003.

It put the decline in sales in Western Europe down to the fact that 2004 was a year of transition for the group, with the introduction of the Peugeot 407, the new Citroen C5 and the Citroen C4.

Outside Western Europe, group sales rose 16.3 percent to 951,000 from 817,300 the previous year - of which it sold 689,000 Peugeots and 253,000 Citroens - representing 28.2 percent of group sales, compared with 24.9 percent in 2003.

Unit sales surged by 31 percent in Latin America to 143,000 vehicles, while unit sales edged up one percent in Central and Eastern Europe to 220,000. Chinese unit sales, which nearly doubled between 2001 and 2003, fell 13 percent in 2004 to 90,000 units as a result of price cuts, more competition and slower growth.

But the group said sales by its Chinese joint venture Dongfeng Peugeot Citroen Automobiles were expected to return to growth.

The group in October confirmed its 2004 full year targets of modest growth in unit sales and a consolidated operating margin comparable to that of 2003.

© AFP

Subject: French News

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