Peugeot-maker PSA says it's ready for plunging demand
The maker of Peugeot cars says it’s ready for a plunge in demand.
PSA group says it has the funds to cope with a halving in auto industry sales this year.
It's also sticking to profit margin targets.
The news helped its shares buck a down day for stocks on Tuesday (April 21).
Like rivals, the firm has shuttered plants as governments enforce lockdowns.
With many dealerships also shut, sales have all but ground to a halt.
PSA - which also makes Citroen, DS, Opel and Vauxhall vehicles - says 90% of staff are at least partially furloughed.
But it aims to avoid taking any government-guaranteed loans.
Any company that does take is likely to face pressure to scrap or trim dividends.
And that could be contrary to the terms of PSA’s planned merger with Fiat-Chrysler.
For the first quarter the French firm saw sales drop by over 15% to 16.3 billion dollars.
Lockdowns only hit the last few weeks of the period though, meaning the next quarter could be worse.
PSA says it now expects auto-sector sales to fall 25% in Europe this year.
