PSA Peugeot Citroën may form a second joint venture in China, part of a plan to boost overseas sales and take on industry leaders such as Volkswagen, Toyota and Honda, according to Philippe Varin, its new chief executive.
Mr Varin's remarks came yesterday as Europe's second- largest carmaker announced a first-half loss of nearly €1bn ($1.4bn), but saw its share price surge by nearly 11 per cent after it said it had bolstered its balance sheet and reduced its net debt to €2bn.
Peugeot said it would now tailor its line-up – dominated by small and midsize hatchbacks and diesel engines in Europe – to local tastes in fast-growing markets such as China and Brazil, offering more sedans and pick-ups with petrol engines and automatic transmissions. “To ensure growth we need to be a global player,” Mr Varin said. Peugeot sells about a third of its cars outside Europe and loses money overseas because its sales volumes are too small to cover its development and distribution costs.