Wednesday 23 October 2019 8:34 am

Peugeot maker PSA Group boosts revenue despite sales slip

Peugeot maker PSA Group today reported higher revenue for the third quarter, even as its sales slowed globally.

The French carmaker was boosted by higher demand for its more expensive sports utility vehicle (SUV) models.

PSA said revenue from the three months ended September rose one per cent to €15.6bn (£13.5bn).

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Vehicle unit sales in the period fell four per cent to 674,500.

The Peugeot and Citroen maker, which bought Opel-Vauxhall from General Motors in 2017, said it expected car sales to shrink this year in all major markets.

PSA said sales of its larger and more profitable SUVs such as the Citroen C5 Aircross helped boost revenue and offset unfavourable currency headwinds.

Vehicle sales in Europe slipped 2.7 per cent on the same period last year to 569,000 while sales in China and South East Asia plunged 40.1 per cent to 29,000 units.

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The Middle East and Africa was one bright spot with sales rising 41.2 per cent to 34,000.

Fellow French carmaker Renault cut its 2019 revenue forecast last week and posted a fall in third quarter revenue, saying it was investing further in its alliance with Japan’s Nissan to make savings.

Carmakers globally are suffering from a fall in demand from emerging markets, as well as a push for less polluting vehicles which is eating up investment cash and making them consider possible tie-ups.