PSA Group 3Q 2020 Financial Results

PSA Group 3Q 2020 Financial Results

October 30, 2020 0 By autotimesnews

In the third quarter of 2020, the PSA Group’s Automotive Division is showing profit growth to € 12 billion, a 1.2% increase over the same period last year. This was achieved thanks to an excellent model line and a successful pricing policy. It is worth noting the successful launch of electrified new products, thanks to which the PSA Group takes a leading position in reducing CO2 emissions. The markets of the Middle East and Africa showed impressive sales growth.

At the end of the third quarter of 2020, the total profit of the PSA Group amounted to € 15.453 billion against € 15.579 billion for the same period in 2019 – a decrease of 0.8%.

At the same time, the profit of the automotive division of the PSA Group for the third quarter of 2020 reached € 11.964 billion – which is 1.2% more than was received in the third quarter of last year.

This result was provided by several important factors at once: strengthening and expansion of the model range (+ 5.8%), successful price positioning and promotional offers (+ 1.5%), increased sales growth through partners of the PSA Group (+ 0.1%), other market activities (+ 2.7%). All this was able to cover a number of negative events – for example, a decrease in sales in different countries (-6.8%), a negative impact from the fall in exchange rates (-2.1%): first of all, the Turkish lira and the Argentine peso.

It is especially worth noting the strengthening of the PSA Group’s model line after the successful launches of such important new vehicles as: PEUGEOT 208, PEUGEOT 2008, OPEL Corsa (all models are available from the start in versions with internal combustion engines or as electric vehicles), the launch of a hybrid version of the CITROËN C5 crossover Aircross PHEV. As a result, in the third quarter of 2020, 589 thousand vehicles of PSA Group Brands were sold worldwide, which allowed maintaining excellent profitability and financial flow.

The global global car warehouse (including warehouses of independent importers and dealers) at the end of September 2020 amounted to 428 thousand units, which is 26% less compared to September 2019 data.

Profitability of the Faurecia division at the end of the reporting period decreased by 7.4% and amounted to € 3.874 billion.

Markets at a Glance: In 2020, the PSA Group experienced a 25% overall decline in sales in Europe, the Latin American market declined 30% and the Chinese market declined 10%.

Global goal: even despite the situation, PSA Group adheres to its goal – to achieve an average profitability level of 4.5% at the end of 2019-2021.