5 a performance worthy of their best years

Damage from the storm are worse than expected by analysts: PSA Peugeot Citroën has cashed in a net loss of 343 million euros in financial year 2008. Compared to the profit of 885 million in 2007, this represents a historic plunge of 1.23 billion! The second European automaker had not experienced deficit since 1997 (2.76 billion francs), when Jean-Martin Folz spent massive provisions for solder era Calvet. 2008 Was also very clearly EBIT impacted by heavy writedowns of assets, especially the Faurecia subsidiary, and provisions for restructuring plans, be total loads of 917 million, but the current operational result fell to only 550 million, or a division three in one year. As the turnover fall by 7.4, 54,35 billion, there even more than expected.

While the Group had held its financial objectives until the first half, the end of the year came blasting these progress: in the second half, the disaster of the world automobile, which is spread to all major markets of PSA, has caused operational loss of 1.26 billion euros in the automotive industry, the heart of the activity. It is therefore a ravaged group which will have to adapt to the hurricane and to rebuild without too sacrificing its objectives, and hoping to finish the year 2010 in the balance, at least on the operational plan.

The State oxygen balloon

"2009 will be a hard year." "This exercise will be deficit, with a first-half of unprecedented difficulty", warns Christian Streiff, the pattern of PSA, which will continue in its cost-cutting and would again lower its level of production of 20 to 30 on the year, according to the evolution of the markets. A new emergency plan called "Cash 2009" was launched, to amplify the effects of restructuring. Top priorities: managing liquidity, stocks of cars to sell... and the workforce.

After 18,000 positions in the West the past two years, or 10 of the total, PSA now plans to separate from about 11,000 additional employees this year (including its subsidiaries such as Faurecia), of which 6,000 to 7,000 in France. In France, indeed, the plan of 3550 current departures, which is open until June 30, was likely to be extended. To the Elysee, PSA is only committed to not close plant for five years and not dismiss in France "in the current circumstances". This does not preclude continuing to resize its factories down, on the basis of voluntary. 3 Billion euros of loans from the State, which will be paid in the first quarter, will be very useful to the company, which evaluates to some 4 billion year funding needs. This oxygen balloon should particularly allow, domino effect, resume constructive relationships with its bankers. SAP, which provides credit facilities not from EUR 2.4 billion due 2011, negotiates a new syndicated credit and is considering a bond issue "as soon as market conditions permit". The participatory loan over five years of the State, the remuneration conditions have given rise to negotiations tight with the State until last weekend, will be accompanied by an interest rate of 6 until PSA and Renault will be in trouble. If their margin exceeds 3 of turnover, this rate will go back to 7.75, and more if it was 5.5, a performance worthy of their best years.

In relocation, PSA will launch as scheduled the next generation of small engine gasoline 3-cylinder in its plant in Trémery, Lorraine. In contrast, the second wave, which consisted of the then produce in a country "low cost" (Poland or Turkey), is no longer news, the market needs justifying more. Questioned on his policy of alliances and on possible concentrations with another Builder for the critical size, Christian Streiff still refuses to disclose its batteries.