PSA Group has posted an unexpected profit in the first half of 2020, despite coronavirus shutting down plants and closing dealerships around the world.
Net profit for the Group – which includes brands Peugeot, Citroen, DS, Vauxhall and Opel – fell from €1.8bn in the first half of last year to €595m in 2020, while revenue fell 34.5 per cent to €25bn, according to the Financial Times.
Operating margin at the automotive division fell to 3.7 per cent – a considerable drop compared to the 8.7 per cent the firm managed last year.
Despite this the group’s target of 4.5 per cent operating margin for 2019-2021 was confirmed.
In a statement, chairman Carlos Tavares said: ‘This H1 result proves the group’s resilience, as a reward of six consecutive years of intense work to increase our agility and lower our breakeven point.
‘The group is also weathering this crisis thanks to the commitment of the teams, focused to deliver a clean, safe and affordable mobility for our customers. We are determined to achieve solid rebound in the second half of the year, while finalising the birth of Stellantis before the end of Q1 2021.’
As already reported by Car Dealer, Stellantis is the new name for the merger between PSA and Fiat Chrysler Automobiles (FCA).
Tavares, who will take the role of CEO of Stellantis suggested greater cost savings will likely be made and he’ll be watching the company’s cash position from ‘day one’.
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