Peugeot Profit Rises 49% on Cost-Cutting, New Models

[depakid]

Source: Bloomberg

PSA Peugeot Citroen, Europe's second-biggest carmaker, said first-half profit rose 49 percent, exceeding analysts' estimates, on cost cuts and buoyant demand for its new 308 compact and 207 small car.

In the first half, French carmakers were cushioned against a 2 percent slump in European auto deliveries by tax breaks that spurred demand for fuel-efficient cars in their home market. June car registrations nevertheless slowed in France, suggesting that the boost may be short-lived. The company's large offering of smaller cars and diesel engines ``gives it an increasingly decisive competitive edge,'' the company said.

Under French tax incentives, introduced in January, buyers of new cars that emit less than 130 grams of carbon dioxide per kilometer receive bonus payments of 200 euros to 1,000 euros. Vehicles emitting more than 160 grams incur a tax of 200 euros to 2,600 euros.

Helped by the Peugeot 308 compact and 207 hatchback, as well as the introduction of the Citroen C5 sedan, the two brands increased their combined deliveries to 1.85 million vehicles in the first six months from 1.76 million a year earlier, the company said July 8. Western European sales fell 3.5 percent to 1.23 million vehicles, while deliveries outside the region increased by 20 percent.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aFU1nejaIoxo&refer=home

[comtec]

1. hmmmmm, i wonder if we can get those credits if we buy it in france...

we live in holland, not that far a drive tho... :D

[jaybeat]

2. What a novel idea!

Under French tax incentives, introduced in January, buyers of new cars that emit less than 130 grams of carbon dioxide per kilometer receive bonus payments of 200 euros to 1,000 euros. Vehicles emitting more than 160 grams incur a tax of 200 euros to 2,600 euros.

Use the tax code to *encourage* lower carbon and pollution output and higher fuel economy, and *discourage* waste??

*Help* the market work in the *public* interest?

Fucking knew all along those Frenchies were Commies!

Bring back Freedom Fries!!

:rofl:

[depakid]

3. Yet throughout the 00's, the US used the tax code to promote the largest SUV's

That worked out really well, eh?

btw: they're damn cool cars as well:

The 207





The 308



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Note that it wasn't just responsible public policy, though- but forward looking management that's allowed these automakers to hold their own in very difficult economic times.

VW, Peugeot, Fiat Beat Estimates, Defying Oil Gloom

"Volkswagen AG, PSA Peugeot Citroen and Fiat SpA reported earnings that beat analysts' estimates and forecast higher revenue as record fuel costs spurred sales of the Golf, Peugeot 308 and Fiat 500 compact models."

Consumers are switching to smaller cars with more fuel- efficient engines, Wittig said. ``We see this trend not only in the U.S., but in Europe.''

Winterkorn, 61, said VW has the right strategy. ``The operating environment has become tougher and is demanding considerable efforts from the automotive industry,'' he said. ``We are well-positioned.''

[The Croquist]

5. The "novel" idea was layoffs

I'm sure the almost 10,000 laid off workers are celebrating Peugeot's success.

[snooper2]

4. Are Peugeot

still POS cars?

Every one I ever saw had the combined transmission/electrical problems from 80's models Toyota/VW :rofl: