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PSA remains in the green despite the collapse of the auto market

2021-03-03T10:43:50.755Z

Despite declining turnover, the PSA group managed to generate a profit of 2 billion euros. A result that will allow t



The PSA group weathered the coronavirus storm rather well.

Even if the global sales of the French car manufacturer (Peugeot, Citroën, Opel, DS) plummeted by 27.8%, to 2.5 million vehicles in 2020, with turnover down 18.7%, the manufacturer was still able to generate a profit of 2 billion euros.

Suffice to say that we are far from the historic fall of Renault, with nearly 8 billion losses ...

One of the group's revenues was being able to maintain the selling prices of its vehicles despite the crisis, by managing to generate a margin of 6.1%.

"The results for 2020 demonstrate once again the resilience of PSA", welcomed Carlos Tavares, former boss of PSA who has become CEO of Stellantis since the merger with the Italian-American manufacturer Fiat Chrysler (FCA) to form the fourth group. worldwide in terms of vehicles sold.

A good start for Stellantis

For its part, FCA also recorded a profit of 24 million euros in 2020. "This good financial health represents an essential contribution to the launch of Stellantis", added Carlos Tavares.

PSA presented its results on Wednesday at the same time as the Italian-American manufacturer Fiat Chrysler (FCA), its partner in the new Stellantis group, the fourth in the world in terms of vehicles sold.

Due to the synergies announced (5 billion euros without plant closures) and an expected recovery in the automotive markets, the new group is targeting a current operating margin between 5.5% and 7.5% in 2021, unless important new sanitary measures disrupted these plans.

Stellantis predicts a market rebound of 10% in Europe, 8% in North America, 20% in South America, and 5% in China.

In the meantime, PSA shareholders and employees will be able to benefit from these results.

The board of directors has approved a distribution of one billion euros in dividends to its shareholders, subject to the approval of the general meeting scheduled for April 15, 2021. For their part, employees will receive 430 million euros. euros of profit-sharing and profit-sharing, i.e. 3000 euros gross minimum per employee in France.

Sign that these results reassured investors, the title Stellantis won more than 3% a few minutes after the opening of the Paris Stock Exchange, at 14.31 euros.

Source: leparis

All business articles on 2021-03-03

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