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PSA Peugeot Citroen gets EU approval for new loan, reports improved cash flow

PSA Peugeot Citroen gets EU approval for new loan, reports improved cash flow image

Text: / Photos: Peugeot Press | posted August 07, 2013 14:24

PSA Peugeot Citroen sees stronger vehicle sales in China and Latin America

The EU has given a go ahead for PSA Peugeot Citroen's bailout package. The package covers a total of 7 billion euros worth of debt principal issued to its Banque PSA financial arm. The undertakings include Peugeot taking measures to reduce its debt, and the intervention of the Commission in acquisitions that amount higher than 100 million euros a year.

The revenue experienced decline from 28.8 billion euros for the first half of 2012 to 27.7 billion euros for the first half of 2013. There is a positive free cash flow of 203 million euros, excluding restructuring and exceptional items for 254 million euros.  The net debt in June 30, 2013 amounts to -3.32 billion euros with a slight increase of 173 million euros.

Despite these, Peugeot announced a series of developments for the company. This includes the successful launches of models from its current line-up, 41% increase in sales outside Europe, the restructuring plan of industrial and commercial operations in France, and the first joint procurement with General Motors.

It has been noted that there have been strong vehicle sales in China and Latin America with a 33% increase and a 19.7% increase respectively. In other parts of the world, Peugeot sees commercial successes with the Peugeot 301 and Citroen C-Elysee.

Peugeot returned to the Philippines in October 2012 through Eurobrands Distributors Inc. (EDI). The arrival was backed by a strong expansion plan, aiming to open no less than 12 full-service dealerships nationwide.

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