Peugeot survival looks assured thanks to quick French government help: Cheap loan avoids rights issue blow - small car portfolio ideal to exploit scrappage plans

摘要

Peugeot-Citroen lost almost ?350 million last year and is likely to lose more than ?1 billion this year, but still has some supporters among investors. According to Nomura International, Peugeot-Citroen's finances deteriorated faster than expected in 2008, and earnings and cash flow will worsen again in 2009. "Yet we anticipate a return to profitability in 2010. Peugeot's liquidity issues seem to be solved for now thanks to the French government. The product range is ideally suited to a world of smaller and greener cars. Payback from management's wide ranging cost cutting plan is a mere 12 months away," said Nomura analyst Jeremie Papin.