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25/04/2014 | Paris

In the First Quarter of 2014, PSA Peugeot Citroën saw a rise in worldwide unit sales of 7.7%, supported by the recovery of the European market and by the strong growth in China. The Group was, however, impacted by a sharp deterioration in foreign exchange rates.  

The Group pursued its turnaround plans with:

  • The unveiling of the "Back in the race" plan by Carlos Tavares, Chairman of the Managing Board, setting out the operational framework for a turnaround;
  • The success of new launches, with the Peugeot 308, crowned "Car of the Year", the Citroën C4 Picasso, as well as the announcement of the launches of the Peugeot 108, the Citroën C1 and C4 Cactus, and the Peugeot 408 in Second Half and the DS 5LS in the Second Quarter in China;
  • A strong rise in volumes in China, while the Russian and Latin American markets remain tough for the Group ;
  • Progess in the restructuring plan, leading to improved competitiveness in Europe and the reduction of fixed costs ;
  • The successful renewal of the revolving credit facility, significantly oversubscribed and extended to €3bn1.

First Quarter 2014 revenues

  • Group consolidated revenues of €13.3 bn, up 1,9% compared with the previous year;
  • Automotive Division revenues of  €8.9bn excluding China JVs revenues, up 2.0% vs Q1 2013, significantly impacted by exchange rates ;
  • Faurecia revenues of €4.5bn, up 3.4% ; Banque PSA Finance revenues down 7.4%.


In 2014, PSA Peugeot Citroën expects to see automotive demand increase by around 3% in Europe2 , by approximately 10% in China, and a decline around 7% in Latin America and around 5% in Russia.

The Group positive Group operational free cash flow3 by 2016 at the latest, and €2 bn cumulated Group operational free cash flow over 2016-2018. It is also targeting to reach a 2% operating margin4 in 2018 for the Automotive Division, targeting 5% within the timing of the next mid -term plan 2019-2023.

Automotive Division

Automotive Division revenues rose by 2.0% in the first quarter of 2014 to €8,925 million from €8,747 million in the year-earlier period. Worldwide sales of assembled vehicles rose by 7.7% over the period, to 726,000 units. This reflected a strong rise in volumes in both Europe (+16.0%) and China (+18.3%), versus declines in Latin America (-14.5%) and Russia (-7.9%).

Revenues from new vehicle sales amounted to €6,240 million compared with €6,070 million in first-quarter 2013, up 2.8%, driven by a 4.8% rise in unit sales ex-China, a positive 1.7% product mix effect thanks to recent model launches, and a positive 1.3% price effect, reflecting the consistency of the Group's pricing policy in a market where pricing remains stable at a high level, and a slightly positive market mix of 0.2%.

These favourable elements partially offset the strong negative currency effect of 4.5%.

New vehicle inventory stood at 422,000 units at 31 March 2014, up 8,000 units compared with a year earlier, reflecting the growth in volumes. The Group continues to tightly manage inventory, in line with its objectives of operating free cash flow burn reduction.

Product highlights

At end-March, orders for the Peugeot 308 totalled 70,000 units since launch, ahead of target, driven by the “Car of the Year” award in March 2014, the launch of the 308 SW version and the Pure Tech petrol and Blue HDi diesel engines, both of which offer best-in-class carbon emissions performance. To support the strong demand, an additional shift was introduced at the Sochaux plant.

The Peugeot 2008 is going from strength to strength, with 40,000 units sold over the quarter. The Group initiated a second project to increase production capacity at the Mulhouse plant.

The C4 Picasso and Citroën Grand C4 Picasso delivered another strong performance with 60,000 orders for the 5-seat version at the end of March and 35,000 orders for the seven-seater. High level versions accounted for 70% of sales. The Citroën C3 also returned to its very good sales performance. In addition, the quarter saw the reveal of the C4 Cactus, which illustrates Citroën's new positioning.

The partnership with Changan for the DS brand in China is developing, with new models planned in 2014, notably the DS 5LS in March, and a new DS 6WR SUV, announced at the Beijing Auto Show.


Faurecia reported revenues of €4,518 million for the first quarter of 2014, an increase of 3.4%, and 7% on a comparable basis5. The Quarter saw strong growth in Europe, Asia and Latin America, and revenues increased at all divisions.

Banque PSA Finance

Banque PSA Finance's revenues declined by 7.4% to €418 million in the First Quarter 2014, notably due to the effect of a lower loan book.

Group Highlights

  • On 26 March 2014, the final agreements were signed between PSA Peugeot Citroën, Dongfeng Motor Group, the French State and Etablissement Peugeot Frères and FFP. They provide for the strengthening and deepening the existing manufacturing and sales partnership with Dongfeng Motor Group and manufacturing synergies estimated at around €400 million a year for PSA Peugeot Citroën by 2020, a €3-billion capital increase and free attribution of equity warrants to existing shareholders. They also provide for a balanced ownership structure with DFG, the French State and Etablissements Peugeot Fères / FFP each holding a 14% stake in Peugeot SA.
  • At today's Annual General Meeting of 25th April 2014, shareholders will be asked to vote on resolutions concerning, among other things, the capital increases, the free attribution of warrants to current Peugeot SA shareholders and the change in the Supervisory Board structure. 
  • In the first quarter, PSA Peugeot Citroën also announced that it has entered in exclusive negotiations with the Santander Group to form a European partnership. The project would accelerate the end of the use of the French guarantee; improve Banque PSA Finance's cost of financing and competitiveness; a strengthened commercial tool for the Peugeot and Citroën brands; and potential cash upstream up to €1,5 billion by 2018 for the Group. 
  • During the first quarter, the Group continued to deploy its plan to restructure manufacturing and sales operations in France; 7,730 files for mobility agreements were signed at March 31, 2014.

In April 2014, the Group signed new €3-billion syndicated credit facility comprising a €2.0-billion tranche expiring in five years and a €1.0-billion tranche expiring in three years with two optional one year extensions. The line of credit is contingent on the completion of the share and rights issues announced last 19 February.

1Contingent on the completion of the capital increases  announced last 19 February
2Vs a market estimated by the Group to be slightly positive at around 2% in Europe and around 10% in China, with a 2% decline in Latin America, and a stable market in Russia on February 19,  2014
3Free cash flow of the Manufacturing and sales companies  without restructuring and exceptional
4ROI relating to revenues
5Same perimeter and exchange rates

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