The PSA group, the manufacturer of Peugeot, Citroen and Opel, on Wednesday reported a 0,8% decline in sales for the third quarter, further revealing that revenue has grown again after having experienced sharp declines during the months of confinement. , points out “Reuters”.
The automaker's revenue increased 1,2% to 12 billion euros in the third quarter, after falling 35,5% at the beginning of the year due to the pandemic. Under the leadership of Portuguese Carlos Tavares, PSA focused on the most expensive but also profitable models, in order to help the manufacturer overcome the drop in sales volume.
In the third quarter, the manufacturer's global sales were 15,5 billion euros, down 0,8% from the same quarter last year. Even with the opening of dealerships and the recovery of economies, although it seems for a short time, the volume of car sales has plummeted.
An alternative found by PSA to recover sales was to bet on models with higher prices, which gained popularity at the beginning of the year, and this is a business model that Renault is trying to emulate as it tries to recover revenues, profits and sales. In fact, the new Peugeot 208 model raised the manufacturer's orders, as did the SUVs that won over customers.
Despite the pandemic, PSA maintains its goal of achieving an adjusted operating margin of over 4,5% by 2021, and expects to generate positive cash flow this year.
PSA's shares on the French stock exchange are down 3,83% to 15,56 euros despite the quarterly results having been positive compared to the outlook. Also rival Renault is in free fall on the stock market, losing 5,89% to 21,41 euros.