PSA Group say their operating margin reached a record 8.5% as the company lowered costs and sold more expensive models such as the Citroën C5 Aircross SUV. Group revenue increased 1% to €75bn despite falling vehicle sales which fell 10% at 3.49 million units, PSA said in last week.
PSA CEO Carlos Tavares has turned around the automaker by focussing relentlessly on cutting out overhead and adding scale since he arrived from Renault in 2014.The automaker has trimmed costs in areas such as purchasing as it integrated its acquisition of Opel and Vauxhall.
PSA see the European car market shrinking 3% in 2020 and Russia declining
2%. PSA’s outlook adds to a souring of the global car industry in recent weeks,
with China grappling to contain the coronavirus epidemic that has closed
factories and hobbled distribution chains spanning continents.