outlook
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies
This profit warning - the second in three months - reflected the poor sales performance of the company's cars in Europe.
The competition in the automobile market in Europe remained intense and this contributed to lower margins. PSA had launched several new models in 2005. Even so, worldwide sales of Peugeot branded cars in 2005 fell by 1.5%.
However, Citroën car sales were 3.5% higher in the same period. The Peugeot arm of PSA expected to sell two million cars in 2006.
The company hoped to sell half a million units of its new model, the 207, a compact car launched in January 2006 by the end of 2007.