Peugeot records largest-ever loss

Peugeot Citroen recorded an historic €5bn loss last year after Europe’s slumping car market forced France’s largest manufacturer to take a €3bn financial charge in its annual accounts.

The Paris-based group says its annual loss, the largest in its history, “reflects the deteriorated environment in the automotive sector in Europe”.

Revenue from new vechicle sales slumped 12.4% last year to €27.8bn.

The company said falling demand and rising cost of steel and other materials led to an operating loss of €1.5bn for its car making operations last year.

Europe’s car market contracted 8.2% last year to the lowest level since 1995, according to Brussels-based car industry group ACEA, but the figure in France reached 13.9%.