PSA reports profit for first half 2020 despite coronavirus impact

July 29, 2020

France’s Groupe PSA, the owner of the Peugeot, Citroën, DS Automobiles, Opel and Vauxhall car brands, has reported a profit for the first half of 2020, despite the impact of the coronavirus (COVID-19) on the automotive sector. 

During the period, PSA’s group net income fell to €595 million, down from €1.8 billion in the first half of 2019, while revenue fell by 34.5% to €25 billion. The group also raised expectations for cost savings in its pending €44 billion merger with Fiat Chrysler.

The group’s automotive division reported an operating margin of 3.7% in the first half of 2020, significantly lower than the 8.7% operating margin achieved in 2019. This remains in line with the group’s hope to achieve an operating margin of 4.5% for the period 2019–2021.

Carlos Tavares, PSA Group’s Chief Executive, stated, “This first half result proves the group’s resilience, as a reward of six consecutive years of intense work to increase our agility and lower our break-even point.” 

PSA’s ability to generate cash in the second half of the year will be “highly dependent on conditions under which we operate in the second half of 2020,” he added, explaining “we have no control on lockdowns.” 

Tavares stated that greater cost savings from PSA’s merger with Fiat Chrysler, announced in December, are now expected. The group’s original plans for €3.7 billion of synergies is now “a floor”, he stated, with a team of more than 500 PSA staff working to develop “proactive proposals” for more savings.

Tavarez stated that the merger transaction is on track to close in the first quarter of 2021. For the remainder of 2020, PSA anticipates a 25% decrease in the automotive market in Europe, a 30% drop in Russia and Latin America, and 10% drop in China. 

Recent issue of Powder Metallurgy review - your go-to resource to stay updated on the world of powder metallurgy and metal powders

In the latest issue of PM Review…

PM Review Spring 2023

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • GKN Powder Metallurgy: A strategic vision for the future of permanent magnets for EVs
  • Building trust in the Powder Metallurgy industry: The role of standardisation and an update on recent work by ISO/TC 119
  • High-volume powder production for Additive Manufacturing: SMS group’s continuous metal powder production process
  • Development of enhanced-performance PM brake pads for high-speed trains by Beijing Tianyishangjia New Material Corp., Ltd.
  • The START project: Creating a sustainable supply chain for green energy harvesting products by Powder Metallurgy
  • World PM2022: Reviewing three innovative methods for metal powder production

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

From the industry…

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.


Browse the archive


Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
Download PDF
Share via
Copy link