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PSA posts strong Q1 performance but warns of tough year ahead

PSA Peugeot Citroën has seen revenues and market share increase in the first quarter of the year.

Its share of the European car and light commercial vehicle market increased to 14.6% from 13.5% in Q1-2009.

Revenues across the group in the first quarter were up 27.5% to €14.0bn. Its automotive division revenue was up 22.4% compared with Q1-2009.

However, Philippe Varin, chairman of the PSA Peugeot Citroën Managing Board, warned that the industry is still facing a tough year.

“I am very confident that our sales and marketing momentum and the deployment of the performance plan will enable the group to limit the impact of a business environment that risks being difficult in Europe in the second half," he said.

In Western Europe, the group's market share rose to 14.6% from 13.5% in first-quarter 2009, with particularly strong gains in Italy (up 1.8 points to 11.6%) and in the United Kingdom (up 0.3 points to 9.5%).

However, it still expects the European automotive market to contract by around 9% over the year, although it said signs of an upturn in the European van market (up 6%), have allowed it to strengthen its position with a 22.7% share.

PSA Peugeot Citroën now expects to report significant recurring operating income for first-half 2010, including a
positive contribution from the Automotive Division.

It said it has successfully maintained the steady pace of new model launches and capitalised on its competitive strengths, notably in low-carbon vehicles.

"The latest introductions helped to drive market share gains in Europe. The new brand images – Citroën’s “Créative Technologie” unveiled in 2009 and Peugeot’s “Motion & Emotion” presented last January – were very favourably received and have impelled a new dynamic at both brands."

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