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Peugeot maker PSA posts record profits ahead of FCA merger

PARIS — Peugeot maker PSA Group said its profitability reached a record high in 2019 but the French carmaker forecast falling industry sales in Europe this year as it pursues its merger with Fiat Chrysler, which is strong in North America. PSA has trimmed costs in areas such as the procurement of components as it has integrated its acquisition of Opel and Vauxhall, boosting operating margins to 8.5% last year. The group, which also produces cars under the Citroen and DS brands, offset a slump in vehicle sales by selling pricier SUV models, with launches including the Citroen C5 Aircross helping to lift revenues by a higher-than-expected 1% to $81.2 billion (74.7 billion euros). That helped it stand out in a car market where some rivals including France's Renault have struggled with sliding revenues and profits, amid a broader downturn in demand. PSA's group net profit increased 13.2% to a record 3.2 billion euros, and the company increased its dividend against 2019 results to 1.23 euros per share, up 58% from 2018 levels. The carmaker was "once again very solid", analysts at brokerage Oddo-BHF said in a note, adding the results confirmed the company's "best-in-class status." However PSA forecast a 3% contraction in Europe's car market this year, by far its biggest market. The tie-up with Fiat Chrysler will help it gain exposure to that group's strong presence in North America with brands like Jeep. The two companies struck a deal in December to create the world's No.4 carmaker, to better cope with market turmoil and the cost of making less-polluting vehicles. Fiat also posted more upbeat results than most rivals this year. CORONAVIRUS WEIGHS PSA boss Carlos Tavares told a news conference that the two groups were both in good shape and well placed to face market challenges together. He said he did not expect any major regulatory hurdles to the merger, adding it had so far submitted 14 approval requests to competition authorities out of the 24 it needs. There are no immediate plans to change anything in the large portfolio of brands within the combined group, he added. However the companies still face problems this year, including the coronavirus outbreak which has paralyzed production in China and hits carmakers' supply chain. PSA said the coronavirus impact was still difficult to assess. It factories in Wuhan, at the epicenter of the outbreak, are due to reopen in the second week of March.

Citro?n C4 Cactus is the ultra-light, ultra-efficient hatch we want [w/video]

We've already told you all about the Citroën C4 Cactus when the production version was unveiled early last month, discussing its ultra-low curb weight and fuel efficient line of powertrains. Now, we've scoped it out on the floor of the Geneva Motor Show.
What's immediately noticeable is that the C4 Cactus is not a particularly large car, despite fairly spacious back and front seats. It's rather tall, which we imagine could impact the handling, although at just over 2,100 pounds (965 kilograms... no kidding), it could be as tall as the Eiffel Tower and still handle well. As we mentioned, that low curb weight shouldn't just help with the way the C4 handles, but in terms of fuel economy, which is rated at a whopping 91.1 miles per gallon on the European cycle.
The interior, meanwhile, is an interesting place. The clean dash is really only interrupted by the central touchscreen and the slim instrument cluster. It's refreshing, at least when looked at alongside more heavily styled interiors.

Citro?n names new CEO in executive shuffle

Peugeot SA (otherwise known as PSA Peugeot Citroën) has been shaking things up in the top echelon of its executive ranks. It recently hired former Renault COO Carlos Tavares as its group chief executive and former Airbus chief Louis Gallois as chairman. Now it's announced two more top executive appointments.
First up is Linda Jackson, who steps into the role as CEO of the Citroën brand. Jackson had until now been managing director of Citroën in the UK and Ireland, a job she's held since 2010, and comes with over 35 years of experience in the industry. She replaces Fréderic Banzet who is taking up a new role in the Peugeot family's holding company FFP that controls, among other assets, 19 percent of PSA.
While Jackson will now be responsible for the Citroën brand itself, operation of the DS sub-brand is being handed to Yves Bonnefont, who is being promoted from his current position as group strategy director and deputy Citroën brand chief.