European car market will fall in 2010: Peugeot

PSA Peugeot Citroen forecasted that Europe's car market will shrink by 9 per cent this year as the company reported massive losses in 2009.

By Agencies | Feb 10, 2010, 01.33 PM IST

PARIS: French auto company PSA Peugeot Citroen on Wednesday forecasted that Europe's car market will shrink by a further 9 per cent this year as the company reported massive losses in 2009.

"In 2010 we expect the market conditions to be challenging, with a European market down 9 per cent," chief executive Philippe Varin said in a statement.

The company reported a net loss of 1.161 billion euros (1.599 billion dollars) in 2009, triple the loss of 363 million euros a year earlier.

But results were better in the second half of the year as sales in Europe picked up thanks to government incentives, with an operating profit of 137 million euros after an operating loss of 826 million euros in the first half.

The year 2009 was "highly contrasted," the earnings statement said.

Car sales fell in Europe and the United States last year because of the global economic crisis but the full fallout for the industry has been averted by government trade-in schemes to encourage people to buy cars.

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