Plug-in electric car sales seem to progress pretty well, but COVID-19 ruined the rest of the business.
In Europe (the company's biggest market), sales amounted to 548,631, which is 30% less than a year ago.
Because of the situation with the COVID-19 outbreak, the revenues were down by 15.6% at €15.2 billion.
There is also a positive news, as PSA Group said in its presentation (see here from about 3:00), that was compliant with the new, stricter emission requirements in the European Union - both in Q1 and each month of the quarter individually.
It was possible thanks to 6% of "LEV" (Light Electric Vehicles) sales share (under 33,000 considering European sales volume), which include all-electric and most likely also plug-in hybrid models.
The bad news is that the company anticipates a significant decrease in the automotive market in 2020:
- Europe: by 25%
- China: by 10%
- Latin America: by 25%
- Russia: by 20%
Q1 2020 Group revenue at €15.2 billion
- Groupe PSA Q1 revenue down by 15.6% at €15.2 billion;
- Automotive division revenue down by 15.7% at €11.9 billion driven by a sharp volume drop partially offset by a strong product mix;
- Consolidated worldwide sales down 29%;
- The Group’s priority is to protect its employees with a reinforced sanitary protocol and prepare the future of the company.
Group revenue amounted to €15,179 million in Q1 2020 compared with €17,976 million in Q1 2019.
Automotive division revenue amounted to €11,934 million down by 15.7% compared to Q1 2019. The positive impact of product mix (+5.3%), price (+0.5%) as well as other effects (+3.5%) and sales to partners (+0.1%) partially offset the sharp decrease of volumes and country mix (-24.6%) and the negative impact of exchange rates (-0.5%).
With a total of 627,000 cars sold, Q1 2020 consolidated worldwide sales were down, impacted by the Covid-19 crisis.
Total inventory, including independent dealers and importers, stood at 715,000 vehicles at 31 March 2020 and decreased by 1,000 units from 31 March 2019.
Faurecia revenue was down at €3,739 million.
Philippe de Rovira, Chief Financial Officer of Groupe PSA said: “Having secured its liquidity and drastically cut its costs, the group now fully focuses on preparing the rebound in a chaotic economic environment”.
Market outlook: in 2020, the Group now anticipates a decrease of the automotive market by 25% in Europe, 10% in China, 25% in Latin America and 20% in Russia.
The outlook is currently difficult to assess and will depend on the scale, duration and geographic extent of the Covid-19 crisis, as well as the measures taken by the countries concerned.
Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin on average for the period 2019-2021.