PSA Peugeot Citroën has announced it lost €5bn in 2012, largely due to a €4.7bn write down on assets. The loss compares with a €588m profit in 2011.
Group revenues fell 5.2 per cent to €55.4bn, while the automotive division's revenues finished the year down 10.3 per cent.
Last summer, PSA revealed a programme to cut costs, which included the planned closure of the firm’s Aulnay plant, which had been running under capacity for some time.
Despite the Aulnay closure being delayed due to union action, PSA said that it is on-track to exceed its €1.2bn cost-reduction programme. It also plans to dispose of assets worth €2bn and reduce its inventory.
Philippe Varin, PSA managing board chairman said: “The Group’s 2012 results reflect the deteriorated environment in the automotive sector in Europe. In this context we have taken the difficult but necessary measures to reorganise our manufacturing base in France."
PSA underlined its commitment to the alliance with GM. Varin said: “The foundations for our rebound have been laid. We are going to build on the strong identity of our brands and differentiate their customer territories. We are going to focus our investments, actively restore our profitability in Europe and reap the benefits from our investments in growing markets.”
The group reduced net debt by €211m to €3.1bn, while the automotive division saw debt fall by €712m to €1.25bn.
PSA said its hopes for the coming year have been buoyed by the Peugeot 208 becoming the biggest seller in its class in December and the firm reaching second position in the European hybrid car market.
