Thursday 14 December 2017

Peugeot feels fallout from Volkswagen as sales falter

Volkswagen saw its market share in Europe drop fractionally in September (AP)
Volkswagen saw its market share in Europe drop fractionally in September (AP)

Mathieu Rosemain

Peugeot Citroen said it has never duped consumers about its diesel vehicles, taking a swipe at Volkswagen as the German rival reels in the aftermath of a cheating scandal.

Peugeot promised new measures to make its vehicles cleaner and said it will also soon publish real-world fuel economy figures vetted by an independent body. The French carmaker, Europe's second-biggest, said it has never fitted vehicles with software to turn on emissions controls only while being tested, as Volkswagen has admitted to doing.

"We know that we have a favourable positioning, and we want to exploit this favorable positioning by letting people know about it," said chief financial officer Jean-Baptiste de Chatillon.

Peugeot relies on diesel, especially in its home market of Europe. The engine type accounted for about 60pc of its European sales in the first half of this year, and 42pc worldwide.

The Paris-based carmaker said yesterday that third- quarter revenue grew 3.2pc to €12.4bn as both deliveries and pricing in the region improved.

Even so, Peugeot's worldwide vehicle sales fell 4.3pc in the period, pushed down in part by a drop in China.

Peugeot shares fell as much as 2.7pc in Paris.

"The reality is that this car company is not growing," said Max Warburton, a Singapore-based analyst at Sanford C Bernstein, with an outperform recommendation on Peugeot stock. "Can car companies without growth really thrive?"

Nine-month deliveries fell 1pc from a year earlier to 2.16m vehicles. Third-quarter sales dropped 17pc in China and Southeast Asia and 23pc in Latin America, while increasing 6.1pc in Europe. (Bloomberg)

Irish Independent

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