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PSA profits up, but jobs to go

PSA Peugeot Citroen posted a 6.5% increase in first quarter consoldated sales and revenue to €14.9 billion (£10.1bn), compared to €13.9bn (£9.5bn) for the first three months of 2006 in the wake of proposed job cuts.

PSA’s automobile division sales and revenue rose 5.6% to €11.6bn (£8bn) from €11bn (£7.5bn) a year earlier.

Western European sales rose by 1.6% to 596,300 units in Q1. Peugeot and Citroën’s aggregate market share was down slightly to 14.3%, compared with 14.4% in Q1 2006.

But despite the positive results, the French manufacturer still wants to cut 4,800 jobs in France as part of its business restructure. PSA will offer incentives for workers to accept voluntary redundancy.

Peugeot sold 119,800 units of its new 207, which was in line with the company’s objectives and drove a 19.7% increase in combined 206 and 207 sales. Following the launch of the Grand C4 Picasso in October 2006 and the marketing of the C4 Picasso since last March, sales of the Xsara Picasso and C4 Picasso lines stood at 74,600 units, up 52.2% for the quarter.

PSA cut 2,300 UK jobs and closed its Coventry plant In January to switch production to Slovakia.

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