Peugeot-Citroen announce 'massive' production cuts

PSA Peugeot-Citroen today slashed its full-year targets and announced “massive” production cuts after third-quarter revenue shrank by 5.2%.

The French car maker said that sales in the previous three months fell to €13.3bn from €14.02bn as the financial crisis hit auto sales in Europe and slowed growth elsewhere.

Anticipating a 17% drop in the European market in the fourth quarter, Peugeot-Citroen said it now expects its global sales volumes to fall 3.5% from 2007.

Previously it had been expecting volumes to grow 5% this year.

Europe’s second-largest car manufacturer by sales has reduced its target for operating margin – a measure of earnings from ongoing operations – to 1.3% for 2008 from 3.5%.